Fall 2013 B Notices: Notice 1430 – Information about Your Form 1099-K (august 2013)
Why you are receiving this notice?
Your name and taxpayer identification number (TIN) submitted on Form 1099-K,Payment Card and
Third Party Network Transactions,
by a payment card processor or third-party settlement organization
does not match IRS records. If a payment card processor or third-party settlement organization
submits a Form 1099-K for tax year 2013 with an incorrect TIN or name for you, the payments you
receive for your payment card or third party network transactions will be subject to backup
withholding. This means the payment card processor or third-party settlement organization will be
required to withhold 28% from each payment to you beginning as early as September 2014.
If you operate as a partnership or subchapter S corporation, any monies withheld due to an incorrect
name or TIN can only be claimed by the partners and shareholders on their individual income tax
returns for their shares of the withheld amounts. The monies are not refundable to the partnership or
subchapter S corporation.
What you need to do
You need to immediately contact your payment card processor or third-party settlement organization.
Verify that the name and TIN the payment card processor or third-party settlement organization has in
its records matches the exact name and TIN on your income tax return.
For additional information on Form 1099-K reporting and backup withholding, visit our website at
www.irs.gov
and enter keywords, “Third Party Reporting Center” or “Backup Withholding.”
