IRS Reporting Fee Definition

Merchant Account IRS Reporting Fee Explained


What is an IRS reporting fee? An IRS reporting fee, also known as an “IRS regulatory fee” or an “IRS filing fee,” is a fee imposed by merchant account providers to recover their administrative costs for reporting a merchant’s annual credit card processing volume to the IRS. Each year since 2011, payment processors have been required to supply a 1099-K form to both the IRS and to each of their merchants who process over $20,000 in a year. A 1099-K form reports the total amount paid to a merchant that year through credit card sales.

It is strictly the responsibility of the payment processor to generate and supply a 1099-K form to its merchants and to the IRS. Nevertheless, some merchant services providers have started to impose IRS reporting fees to cover the costs associated with completing and submitting these forms. These costs may be charged to the merchant monthly or annually and are often completely unrelated to the actual cost of generating and supplying each 1099-K. In general, merchants should not consent to paying IRS reporting fees because these fees usually represent pure profit for processors. In cases where the IRS reporting fee is non-removable, merchants should either find a different processor or negotiate the fee down to an amount that represents the processor’s actual cost for filling out and sending a single page of information.

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Why I'm Qualified to Write About Credit Card Processing and Merchant Account Services

I'm a former credit card processing sales director who left the industry because I didn't like how it takes advantage of small business owners. It feeds like a leech on businesses and thrives by imposing fees that are nearly impossible to comprehend. Seeing a need for change, I left and built this website help business owners better understand the industry, research merchant services providers, and get refunds of excessive merchant account fees. My experience of working "behind the curtain" in the industry, and using that knowledge for good, has resulted in millions of dollars returned to hard-working small business owners as well as enterprise-level companies.

From the time that I starting working in the merchant services industry to when I left to create this website, I've been on the pulse of payments for nearly 15 years. It didn't seem fair to keep this "insider" knowledge to myself. To lift the fog, I've reviewed hundreds of companies, read thousands of user reviews, and learned the pricing tricks of every provider. If you have questions about credit card processing, you can find the answers on this website.

How I Can Help You

I specialize in helping businesses get refunds of excessive fees and have recovered $1,567,184 this year alone! Submit a recent statement below to find out if you are getting overcharged. I'll take a look at it for free. If I find fees that can be refunded, hire me on contigency. I only get compensated if I put money back into your pocket.

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