pkcpa
Level 2
03-31-2023
09:19 AM
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The credit card processing company includes tips and sales tax in the 1099-K box 1a amount.
If the sales reported on the 1120S is less than the 1099-K amount will this generate an IRS inquiry?
I believe that some preparers gross up the sales (and cost of sales) by the tip and sales tax amounts
but I hesitate to do this.
Thanks for your advice!
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