Implications of IRS electronic payment reporting requirements

A few short weeks ago, the Farmers Market Coalition became aware of a new Final Rule related to IRS reporting requirements for electronic transactions. This regulation, ‘Information Reporting for Payments Made in Settlement of Payment Card and Third Party Network Transactions,’ (6050W, for short) requires that all payments, including EBT, debit, and credit sales, be reported to the IRS (via 1099K, a form they are currently creating) by the merchant processing companies facilitating these transactions (such as J.P. Morgan, ACS, or Fidelity). Essentially, this is to ensure that the IRS receives an annual record of all the incoming electronic transactions conducted by merchants, whether they’re hardware stores, cafés, farmers markets, or farmers themselves. Nonprofits are not exempt from reporting requirements, according to the IRS.

Read the full story for a detailed analysis of how this will be affecting markets and vendors.