1099-K, Merchant Card and Third Party Payments

Forms and Documents

Document	Type	Status	Availability
Form 1099-K 1099-K, Merchant Card and Third Party Payments	Form	New	Available
TD 9496.pdf	Supplementary Document	Uploaded 2011-02-08	Available
Supporting_Statement_1545-NEW_1099-K.pdf	Supporting Statement A	Uploaded 2011-02-08	Available
Expiration Explanation.rtf	Supplementary Document	Uploaded 2011-02-07	Available

IC Document Collections

IC ID	Collection	Type	Status	Form
196146	1099-K, Merchant Card and Third Party Payments	Form	New

ICR Details

OMB Control No: 1545-2205	ICR Reference No: 201102-1545-003
Status: Historical Active	Previous ICR Reference No:
Agency/Subagency: TREAS/IRS	Agency Tracking No: Requesting Approval by 2/11/2011
Title: 1099-K, Merchant Card and Third Party Payments
Type of Information Collection: New collection (Request for a new OMB Control Number)	Common Form ICR:  No
Type of Review Request: Emergency	Approval Requested By: 02/11/2011
OIRA Conclusion Action: Approved without change	Conclusion Date: 02/11/2011
	Date Received in OIRA: 02/08/2011
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	08/31/2011	6 Months From Approved
Responses	2,000	0	0
Time Burden (Hours)	620	0	0
Cost Burden (Dollars)	0	0	0

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Abstract: This form is in response to section 3091(a) of Public Law 110-289, the Housing Assistance Tax Act of 2008 (Div. C of the housing and economic Recovery Act of 2010). The form reflects payments made in settlement of merchant card and third party network transactions for purchases of goods and/or services made with merchant cards and through third party networks.

Emergency Justfication: On July 30, 2008, as part of the Housing Assistance Tax Act of 2008, Div. C of the Housing and Economic Recovery Act of 2008, Public Law (P.L.) 110-289, section 6050W of the Code was enacted, requiring the creation of the new Form 1099-K, Merchant Card and Third Party Network Payments. The process of developing the form’s layout and its associated instructions with assistance from Chief Counsel, public comments, public stakeholders, and the Information Reporting Document Matching (IRDM) team, resulted in numerous overhauls and approaches before a final agreed upon design for processing and collection of required information delayed the submission to OMB in a timely manner. An earlier request to OMB for Paperwork Reduction Act submission on the form and its instructions would have yielded incorrect results. The normal clearance procedures of the form and instructions will present a hardship for taxpayers needing to file this form before the end of the normal clearance processing time. Delay in providing this form to the public, will prevent timely collection of information required by code section 6050W, and will not allow taxpayers to perform the necessary adjustments to paper and computerized record-keeping systems to report the information required by new code section 6050W and its’ regulations; which were issued via Treasury Decision (T.D.) 9496 on August 16, 2010. Therefore, we are respectfully requesting an emergency Paperwork Reduction Act review by February 11, 2011.

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Authorizing Statute(s): PL: Pub.L. 110 - 289 3091(a) Name of Law: Housing Assistance Tax Act of 2008
  

Citations for New Statutory Requirements: PL: Pub.L. 110 - 289 3091(a) Name of Law: Housing Assistance Tax Act of 2008

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
	Not associated with rulemaking

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Federal Register Notices & Comments

Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 1

IC Title	Form No.	Form Name
1099-K, Merchant Card and Third Party Payments	1099-K	Merchant Card for Third Party Payments

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ICR Summary of Burden

	Total Approved	Previously Approved	Change Due to New Statute	Change Due to Agency Discretion	Change Due to Adjustment in Estimate	Change Due to Potential Violation of the PRA
Annual Number of Responses	2,000	0	2,000	0	0	0
Annual Time Burden (Hours)	620	0	620	0	0	0
Annual Cost Burden (Dollars)	0	0	0	0	0	0

Burden increases because of Program Change due to Agency Discretion: No

Burden Increase Due to:

Burden decreases because of Program Change due to Agency Discretion: No

Burden Reduction Due to:

Short Statement: This is a new form is in response to section 3091(a) of Public Law 110-289. The form reflects payments made in settlement of merchant card and third party network transactions for purchases of goods and/or services made with merchant cards and through third party networks. This results in a total estimated burden increase of 620 hours and 2,000 responses.

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Annual Cost to Federal Government: $500,000

Does this IC contain surveys, censuses, or employ statistical methods? No

Is the Supporting Statement intended to be a Privacy Impact Assessment required by the E-Government Act of 2002? No

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? No

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? No

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? No

Is this ICR related to the Pandemic Response? Uncollected

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Common Form ICR:  No

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On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).

The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:

(a) It is necessary for the proper performance of agency functions;

(b) It avoids unnecessary duplication;

(c) It reduces burden on small entities;

(d) It uses plain, coherent, and unambiguous language that is understandable to respondents;

(e) Its implementation will be consistent and compatible with current reporting and recordkeeping practices;

(f) It indicates the retention periods for recordkeeping requirements;

(g) It informs respondents of the information called for under 5 CFR 1320.8 (b)(3) about:

(i) Why the information is being collected;

(ii) Use of information;

(iii) Burden estimate;

(iv) Nature of response (voluntary, required for a benefit, or mandatory);

(v) Nature and extent of confidentiality; and

(vi) Need to display currently valid OMB control number;

(h) It was developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to be collected.

(i) It uses effective and efficient statistical survey methodology (if applicable); and

(j) It makes appropriate use of information technology.

If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.

Certification Date: 02/08/2011

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