Sage 100: With the new law for 1099-misc being instated, I found your charge card is putting the purchase in the actual month it was purchased, instead of WHEN it was paid. Example - purchased item on chg card in Dec. 2010, and its being put into 2010's 1099. BUT, 1099's are made WHEN THE ACTUAL PAYMENT is made, which would be in Jan. 2011. Therefore, the 1099 for 2010 is now OVERSTATED and the 2011 1099 is now WRONG. I called the IRS Info Return Reporting section (866-455-7438) (8:30 AM to 4:30 PM EST), and they said I am correct. It's WHEN you PAY the charge card.

into the 1099 box instantly. This will be fine for items purchased in Jan. thru Nov., BUT, when I put the December purchases in, it went into the 2010 1099 slot. BUT, 1099's are made WHEN THE PAYMENT is MADE to the charge card company, NOT when it was purchased.
I called the IRS "Information Return Reporting" (866-455-7438) (8:30 AM - 4:30 PM EST), and they confirmed that the Dec. 2010 charge card purchase , for a 1099, SHOULD BE MADE for 2011, when the ACTUAL PAYMENT is made, which is 2011
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So your way is making the 2010 1099 "overstated", and the 2011 1099 "understated". You will have to make some kind of patch or something ! ,

by: Susan F. | over a year ago | Financial Management

Might want to check this out. Apparently don't need to report credit card transactions on a 1099.

http://www.indianabusinesslawblog.com/2010/12/the-credit-card-exception-to-t.html

by: Thomas R. | over a year ago

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