Source: https://www.mass.gov/technical-information-release/tir-17-11-new-massachusetts-reporting-requirements-for-third-party
Timestamp: 2020-01-22 06:19:37
Document Index: 86817938

Matched Legal Cases: ['§ 77', '§ 6050', '§ 6050', '§ 1', '§ 6050', '§ 6050', '§ 1']

TIR 17-11: New Massachusetts Reporting Requirements for Third Party Settlement Organizations | Mass.gov
Technical Information Release TIR 17-11: New Massachusetts Reporting Requirements for Third Party Settlement Organizations
All Forms 1099-K must be filed with DOR and furnished to the payee on or before January 31 following the close of the taxable year. TPSOs filing 50 or more Forms 1099-K annually must file such forms electronically with DOR. See TIR 16-9. A TPSO that fails to file Form 1099-K with respect to a payee may be subject to penalties imposed pursuant to G.L. c. 62C, § 77.
TIR 17-11
[1] A third party settlement organization is defined as a central organization that has the contractual obligation to make payment to a payee of a third party network transaction. Internal Revenue Code ("IRC") § 6050W(b)(3). A third party network transaction is defined as any transaction settled through a third party payment network, which is defined as any agreement or arrangement that (i) involves the establishment of accounts with a central organization by a substantial number of providers of goods or services who are unrelated to the central organization and who have agreed to settle transactions for the provision of the goods and services to purchasers according to the terms of the agreement or arrangement; (ii) provides standards and mechanisms for settling transactions; and (iii) guarantees payment to the persons providing goods or services in settlement of transactions with purchasers pursuant to the agreement or arrangement. IRC §§ 6050W(c)(3), (d)(3); Treas. Reg. § 1.6050W-1(c)(3).
[2] For the purposes of this TIR, a “payee” refers to a “participating payee” as defined under IRC § 6050W(d)(1)(A)(ii), which in the case of a third party network transaction is any person who accepts payment from a TPSO in settlement of such transaction. IRC § 6050W(d)(1)(A)(ii).
[3] The gross amount is the total dollar amount of aggregate reportable payment transactions for each payee with no adjustments for credits, cash equivalents, discount amounts, fees, refunded amounts, or any other amounts. Treas. Reg. § 1.6050W-1(a)(6).