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Form 1099-K was introduced in 2011 and is used to report income that you received from credit cards, debit cards, or other electronic payments such as Google Checkout and PayPal.
Initially, the IRS indicated that it would require businesses to reconcile any differences between the amounts reported on their returns, and the amounts reported on Form 1099-K, starting with 2012 returns. More recently however, the IRS has announced that businesses would not be required to show a reconciliation on their tax returns -- and that they did not intend to require a reconciliation on future returns.
Despite this change in the IRS position, you should note that the IRS is establishing a compliance program using the data collected with Form 1099-K. This program will include notices to business taxpayers to validate the quality of merchant card data received by the IRS. Accordingly, you should retain any 1099-Ks you receive for your records in case you are contacted by the IRS.
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