What should I do with this information? It is important that your business books and records reflect your business income, including any amounts that may be reported on Form 1099-K. You must report on your income tax return all income you receive. In most cases, your business income will be in the form of cash, checks, and debit/credit card payments. Business income is generally referred to as gross receipts on income tax returns. Therefore, you should consider the amounts shown on Form 1099-K, along with all other amounts received, when calculating gross receipts for your income tax return.
In addition: -Check your payment card receipt records and merchant statements to confirm that the amount on your Form 1099-K is accurate -Review your records to ensure your gross receipts are accurate and reported correctly on your income tax return -Determine whether you have reported income from all forms of payment received, including cash, checks, and debit, credit, and stored-value card transactions -Maintain documentation to support both the income and deductions you report on your income tax return
If you shared your credit card terminal with another person or business: If you shared your credit card terminal with another person or business, your Form 1099-K will include payment card transactions belonging to the person or business that shared your terminal, in addition to your own payments. Where required, you should file and furnish the appropriate information return (e.g., Form 1099-K or Form 1099-MISC) for each person or business with whom you shared a card terminal. The information return should include the total payment card transaction amount in addition to any other income belonging to the other person or business. You should retain records of payments issued to each person or business sharing your terminal, including but not limited to shared terminal written agreements and cancelled checks.