The IRS has issued a clarification regarding the new Form 1099-K and how to report 1099-K amounts on your business taxes. Business merchants who use third-party payment-processing companies for credit-card and e-commerce transactions should have received a Form 1099-K from each of those processing companies by Jan. 31. (This is only required for merchants with at least $20,000 in processed payments and at least 200 transactions last year.) So how should you report the amounts from Form 1099-K on your business tax return? For 2011 taxes only, the IRS says you do not have to separately report the amount of merchant card and third-party network payments from Form 1099-K on your tax return. The separate-reporting requirement has been deferred until next year, as the IRS and taxpayers transition to using Form 1099-K. Instead, here’s what the IRS says to do with Form 1099-K figures for 2011: If you file Schedule C or Schedule E, enter “0” on the line that says “Merchant card and third party payments.” Report all gross receipts as usual on the lines indicated on Schedules C and E. If you file Schedule F, enter “0” on the lines for “specified” income items. Items that qualify as trade or business expenses should be reported on the appropriate lines of Schedules C, E, and F. Congress created Form 1099-K to help the IRS keep better track of electronic payments. By next year, merchants will have to compare their numbers with those reported by payment-processing companies on Form 1099-K. But critics say Form 1099-K is too burdensome, and suggest it’s not clear what happens if there’s a discrepancy. Some lawmakers are pushing for a bill to scale back Form 1099-K’s requirements , the website The Street reports. The IRS’ Form 1099-K requirements are somewhat confusing, and of course depend on your specific situation. You may want to consult a tax attorney to make sure your return is correctly filed. Related Resources: Clarification to the Instructions for Schedule C, E, & F (Form 1040) on Reporting Form 1099-K Amounts (Internal Revenue Service) How The New IRS Form 1099K Impacts Your Tax Return (EcommerceBytes.com) Browse Tax Lawyers by Location (FindLaw) 5 Ways to Deduct Legal Fees From Your Taxes (FindLaw’s Free Enterprise)