The new forms are creating changes in all of the IRS business tax forms. There will be separate lines added to record 1099-K’s on Schedule C, 1065, 1102 and the 1120S. For those whom have already forgotten, the 1099-K is for reporting payments to merchants from third-party networks (i.e.PayPal). These are required for payees with over 200 sales transactions and over $20,000 in sales. I would expect these levels to decrease for TY2012.
The separate reporting line is for IRS internal audits where they will be matching the forms received to the specific lines on the tax returns. They will be verifying that all income is reported correctly. The IRS has determined that there has been under reporting of gross receipts by sells of goods and servers in the past and are looking to close this tax gap.