1099-K is a new form from the IRS, which requires credit card processors to report 1099 information to the IRS for every payment received by someone with a merchant account.
This does NOT apply to Bill.com, nor to ACH transactions.
IT DOES APPLY TO CREDIT CARD PAYMENTS! Here's the statement from Vantage PayTrace (our partner for credit card processing):
"Federal law requires Vantage Card Services to collect and verify the Tax Identification Number (TIN) and legal name associated with that TIN for each merchant. Under recently effective federal law, payment card networks are required to submit gross sales information reporting (IRS Form 1099-K) to the IRS for each merchant.
The first information report took place in January 2012 for sales in 2011. If there is a discrepancy between the merchant's Tax Identification Number and the business legal name provided to Vantage Card Services and the information maintained by the IRS, as the merchant acquirer we will be required to withhold 28% of the merchants future payment card transactions starting in 2013 and remit these funds to the IRS.
To mitigate the risk to our merchants, we compared merchant tax information in our files with IRS records. Merchants identified as missing TIN information or as having tax information that did not match are contacted and given the opportunity to provide updated information. It is extremely important that TIN and legal name (both as they were originally filed with the IRS) are provided to Vantage Card Services accurately! Merchants that are Sole Proprietorships or Partnerships may use the Social Security Number and legal name of the owner or first partner All other types of merchants will use the Employer Identification Number and legal name of the company."
For information about how you can leverage Bill.com to file your 1099s, check out the following articles: