Important Information Regarding All Merchant Accounts
The Housing Assistance Tax Act of 2008 included the enactment of Section 6050W of the Internal Revenue Code, which requires reporting entities (such as Sage Payment Solutions) to report payment card transactions and third party network transactions to the Internal Revenue Service (IRS) for each calendar year beginning January 1, 2011. As a result, reporting entities will be required to file an annual information return with the IRS and provide each merchant payee with a corresponding Form 1099-K, reporting monthly and annual gross sales.
In order to perform this function, we must have the correct Tax Identification Number or Employee Identification Number (TIN/EIN) and Tax Filing Name for every merchant.
If we do not have a valid TIN/EIN by December 31, 2012, then we will be required to perform backup withholding from our merchant's funding by deducting and withholding income tax from reportable transactions. The original requirement dictated that processors perform this function as of December 31, 2011, but the IRS has extended the timeframe until December 31, 2012. To avoid potential back withholding, we encourage you to update your information at your earliest convenience.
The required percent withheld varies by state, but currently the minimum withholding is 28% and can be held at the request of the IRS until merchant files taxes in 2014.
We are reaching out to all of our merchants who do not have a valid TIN/EIN on file with us. If you did not receive an email or letter from us, then we already have your accurate information and no further action is required by you.
Information from the 1099-K may be verified at any time by accessing our online 1099 TIN-Matching Portal which is available in My Virtual Reports, Sage Payments Solutions’ online reporting system. The TIN Matching Portal will allow you to validate and update your TIN/EIN and also view your 1099 year-to-date information. To access the system, log onto www.MyVirtualReports.com . If you are not already a registered user of My Virtual Reports, you will need your 16 digit merchant identification number and your bank account number to register. The process will take less than 5 minutes.
Log onto www.MyVirtualReports.com now
Click on 'Merchant'
Enter your Merchant ID number, user name and password, then log on. If you are a first time user, please click the 'Register' link at the bottom of the screen
Click on the Eagle icon to view your information
This is a time sensitive matter. Please act now so that you can update our records and avoid any future financial withholdings.
As always, if you have any questions, don't hesitate the contact us at 877-841-7014 from 8 am to 8 pm Eastern Time.
If you would like more information about this requirement, please visit http://www.irs.gov/irb/2009-09_IRB/ar11.html
