the new normal…

•Bank or Processor

•Aggregate Payee transportation company

• Independent Contractor Drivers

• IRS

January 1, 2011• Companies begin to accumulate W-9’s

January 2012• Bank or payment processors will issue a gross transaction form to the transportation company aka aggregator. This will be the total of all charges paid to the Independent Contractor drivers.

January 31, 2012•Deadline for company to distribute 1099-K copy “B” to its Independent Contractor payees.

February 28, 2012•Deadline for company to file 1099-K part “A” to the IRS.

• No minimum amounts or trip counts.

• Banks and processors must inform aggregators of 2011 totals during the month of January 2012.

• Amount reported is the total amount charged to customer not the redeemed amount paid to driver. Driver will account for his processing cost on his tax filing.

• A completed Form W-9 must be obtained from each driver for aggregator to avoid back up withholding rules.

• Employee drivers are exempted.

• Payments to drivers of all other Non-Cash business such as voucher income must be reported.

• Payments by drivers or customers by credit card must be reported

• Income from private label and gift cards must be reported.