Form 1099-K, Merchant Card and Third Party Network Payments, was released by the IRS in 2011 to report payment card transactions made to businesses. Taxpayers, such as online merchants, receive this form because they have accepted merchant cards for payments, or because they received payments through a third party network that (1) exceeded $20,000 in gross total reportable payment transactions and (2) the total number of those transactions exceeded 200 for the calendar year.
For New Jersey Gross Income Tax purposes, taxpayers should follow the same reporting requirements for Form 1099-K as used for all qualified information returns. Specifically, Form 1099-K must be filed with the Division of Taxation on or before February 15 following the close of each calendar year in accordance with N.J.A.C. 18:35-8.1 and the procedures in the NJ-WT.
For additional information, see the IRS website’s Instructions for Form 1099-K at http://www.irs.gov/pub/irs-pdf/i1099k.pdf.