P-Card Question on Credit Card Company Responsibilities
I have been preparing 1099s for vendors listed on our corporate credit card. It is my understanding that in 2010 the responsibilities for filing 1099s with the IRS will be with the credit card companies. Please provide any current information you have on this.
Travel and Expense P-Card and LLC
I have two questions... 1. We have a Corporate Services account with Amex. This is not a purchasing card account, it is a travel and expense type account. Do we only need to report on 1099's for our Amex charges if it is a purchasing card account? 2. If we stayed at a hotel that is an LLC but the parent company is a corporation, do we need to send a 1099 to the LLC?
IRC Section 6050W
Hi - Regarding the proposed regulations under 6050(W) - I am reading the section regarding duplicate reporting as saying that payments reportable under the new 6050(W) that are otherwise reportable under 6041 will no longer be reportable under 6041 (Prop Reg 1.6041.1(a)(1)(iv)). I am reading this as meaning we would no longer be required to report PCard transactions as our merchant bank would now be responsible for that reporting. Is your interpretation the same?
QPCA Question
Our company is exploring the possibility of using a P-Card for certain purchases. While looking through the answers regarding this topic, as well as Rev. Proc 2004-43, Rev. Proc 2004-42, and Internal Revenue Bulletin: 2004-31, there are several questions that arise:
1) Are there any Qualified Payment Card Agents (QPCAs) currently that we can explore?
2) If a QPCA is not feasible for our card, what information can we truly require to be given to us by the Payment Card Organization (PCO)?
3) Are there any guidelines that can be used in a Request For Proposal (RFP) to be given to potential PCOs in order to make a decision?
4) Are PCOs required to provide the Cardholder with the MCC for all transactions?
5) What would be the best way, most feasibly, to solicit TINs from all merchants that the P-Card would be used at once it is determined that their MCC is of a reportable type in order to obtain the Name/TIN combination with sufficient time to put together the 1099 information within the required deadlines?
6) Would it be feasible to include within the RFP a request for the PCO to complete the requirements in order to become a QPCA in order to accept our business?
7) Is there any additional information, bulletins, procedures, or general advise documents in regards to P-Card initiation that is available for exploration prior to signing a contract that we can review?
Any additional information and clarification would be greatly appreciated in regards to this topic.
Employee P-Card Reimbursement Question
We will be going to an individual liabilty credit card program. The card will be issued in employee's name with LHC as the company. The employee will pay the balance monthly but then will turn around and submit a expense reimbursement, which will be paid thru LHC accounts payable back to employee. Some employees are expressing concerns that the check written back to them for reimbursement is taxable? Please advise ASAP.
Thanks,
In general, reimbursements . . .