Outright Helps Online Sellers Handle New 1099-K Tax Form With Confidence New IRS reporting threshold makes detailed sales and expense tracking more important than ever for over half a million online sellers
MOUNTAIN VIEW, Calif., Jan. 3, 2012 /PRNewswire/ -- Mention "tax forms" to small business owners and you'll see an unpleasant expression. But Outright, the leading online accounting solution for online sellers, can turn that frown into a smile for PayPal, eBay, Etsy and Amazon merchants when they receive the new 1099-K form.
The 1099-K is a new form for tax year 2011 that shows gross sales reported to the IRS. Online sellers who have $20,000 or more in gross sales and 200 transactions or more in the calendar year will receive the 1099-K from their third-party payment networks such as PayPal and Amazon Payments. Sellers will need to check the information on the form, also commonly known as the "PayPal 1099", to ensure the reported income is correct. They will also be responsible for documenting expenses that were associated with that reported income, so that they only pay taxes on the profit, not the gross sales as reported on the 1099-K form. That's important because the gross sales totals do not exclude expenses like transaction fees or returns – important deductions to a small businesses' net income.
Outright is making it drop dead simple for online sellers to handle this form effectively. If the online seller has been using Outright, data from all of the transactions included in the 1099-K revenue totals, and expense data will be accurately recorded. The seller just needs to check the 1099-K form against the recorded numbers in their Outright account. After that, they are ready to get started preparing their tax forms, using Outright to quickly and accurately pull together their Schedule C tax totals.
"We are trying to alleviate the anxiety that a new tax law can bring to a small business owner. If a seller is already an Outright customer, then receiving the new 1099-K will just confirm the data they've gathered from each online venue," said Steven Aldrich, CEO of Outright. "If a seller hasn't been using Outright, the business owner can sign up for Outright now and get their data organized before the form even arrives. We want to keep our small business owners from stressing about this new form, and using Outright is a great way to make it all worry-free."
Outright is working directly with tax experts to ensure that the online Outright display will match the form that the small business owner sees, making them as easily comparable as possible.
For more information on the 1099-k or on how Outright can help, please visit our helpful tax resource center.
Outright has one goal: to make accounting as simple as possible so the self-employed can spend as little time as possible on the least enjoyable part of running a business. Outright's easy-to-use online accounting solution automatically brings all sales & expenses together in one place so the user always know what's going on with their business. No math, no manual entry, no paperwork. Outright integrates Etsy, eBay & PayPal information, e-commerce accounts, and bank and credit card accounts so users can stay up-to-date effortlessly -- and instead focus on doing what they love to do. To learn more or sign up, please visit http://outright.com