Many business owners have never heard of form 1099-K.
This form can potentially cause them a lot of headaches.
What is this form?
If you accept payments from third party processors (e.g. credit cards, etc.), you will likely receive this form.
The form will tell you how much $ you collected via that third party.
Why is this form so important?
If you only report the amount of sales that were actually deposited into your bank account (net of fees) on your tax return, you MAY be under reporting your sales for the year.
In simpler terms, your sales amount for your tax returns should be at least what the 1099-K says, not lower.
If you do not report this correctly, you will likely receive a notice from the IRS.