First Data comments on merchant penalties related to IRS backup withholding

First Data released an article called Perspective: IRS 1099-K “Transitional Relief” Offers Backup Withholding Breather to Impacted Merchants. It’s critical for merchants to understand that while recent IRS changes with respect to payment processor reporting have been delayed, the merchant is still responsible. The two recent IRS notices do not bring merchants additional time in which to prepare for the new reporting requirements. They do, however, bring more time before affected merchants will likely have to worry about financial impacts, such as backup withholding.

Link to full article on First Data

Link to IRS New Payment Card Reporting Requirements

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