House Bill 7097 was recently passed by the Florida Legislature and approved by Governor DeSantis, paving the way for a new information return requirement in the state. Under Section 212.134 of the Bill, payment settlement entities and other third-party facilitators who handle payment card and third-party network transactions must file a 1099-K return with Florida pursuant to IRC Section 6050W.
1099-K returns will be due by the 30th day following the IRS due date and are required from payment settlement entities operating in Florida or those filing 1099-K reports on behalf of participating payees with an address in Florida. All returns must be filed electronically. Failure to file a required 1099-K return will result in a $1,000 penalty for each failure for each month the return is due, with the total penalty amount imposed on a reporting entity capped at $10,000 annually. Penalties may be waived by the executive director if a failure to file was due to reasonable cause and not willful negligence, willful neglect, or fraud. This 1099-K filing requirement will become effective January 1, 2021.
To learn more about recent state reporting changes, download our free webinar – “How to Conquer State Reporting Like the Experts”. Our regulatory experts cover important topics like:
- Direct State Reporting vs. CFS
- Changing deadlines for state reporting
- Challenges with reporting in Pennsylvania
- State reporting penalties
- State reporting best practices
With governments likely to increase enforcement next tax season, we hope this recording will help you protect your business from receiving another state reporting penalty.
Download for free today.
