Starting this year, 2011, all processors will be required to report all payments made from a merchant settlement account. This new requirement is outlined in section 6050W of the internal revenue code. It is more important than ever to be sure the correct tax id number is recorded for your account. Failure to do so could result in a 28% back up with holding. In early 2012 you will receive a 1099 for the amounts reported to the IRS.
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