IRS: No worries about the 1099K
In a definitive answer to questions about 1099K reporting requirements, which relates to debit and credit card receipts, the IRS has said it will not require retailers and businesses to separately reconcile reimbursement information, such as cash back, sales taxes, state and local deposits, and other non-income related dollars from the gross receipts.
The IRS letter came in response to an inquiry from the Retail Industry Leaders Association (RILA), an Arlington, Va., trade group.
Last October, the IRS delayed implementation of the new requirement until 2012.
According to the IRS letter, “There will be no reconciliation required on the 2012 form, nor do we intend to require reconciliation going forward. Our intention is that the reporting of gross receipts and sales on the 2012 income tax forms will be modeled on the 2010 income tax forms.”
RILA raised concerns about the complexity of complying with the regulations as well as the relevance of the resulting number in a December 2011 letter to the IRS.
“We very pleased that the IRS took the time to listen and work with us to resolve this matter in a satisfactory manner,” said Bill Hughes, senior VP government affairs. “This will relieve retailers of an unnecessary burden while still providing the IRS with the tools it needs to ensure tax compliance.”
Valspar names new controller
Brenda McCormick, Valspar’s assistant controller and senior finance director, was promoted to Controller, according to a Feb. 16 filing with the Securities and Exchange Commission (SEC). McCormick also served as finance director at Valspar.
In previous experience, McCormick held positions as director financial reporting, planning and analysis at Lawson Software and director financial reporting – consumer products at International Multifoods.
The SEC report also summarized Valspar’s annual meeting on Feb. 16, where shareholders elected three directors who were on the slate and approved by a 10-to-1 margin, in an advisory vote, the corporation’s executive compensation.
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Retail container traffic to increase in first half of 2012
The monthly Global Port Tracker report, released by the National Retail Federation and Hackett Associates, said that import cargo volume at the nation’s major retail container ports is expected to be down 6.8% in February from the same month a year ago. However, volumes should show year-over-year increases through most of the remaining first half of 2012.
“With consumer confidence building, retailers are optimistic that the economy is recovering but are continuing to be cautious with their inventory levels,” said NRF VP supply chain and customs policy Jonathan Gold. “Merchants want to be sure that growth will be sustained and that demand will be there to meet supply.”
U.S. ports followed by Global Port Tracker handled 1.17 million Twenty-Foot Equivalent Units in December, the latest month for which after-the-fact numbers are available. That was down 6% from November since holiday merchandise was already on the shelves but up 2% from December 2010 and brought 2011 to a close at 14.8 million TEU, up 0.4% from 2010’s 14.75 million TEU. One TEU is one 20-ft. cargo container or its equivalent.
January 2012 was estimated at 1.17 million TEU, down 3.3% from January 2011, and February, historically the slowest month of the year, is forecast at 1.03 million TEU, down 6.8% from a year ago. Increases are expected to resume in March, forecast at 1.18 million TEU, up 8.6% from last year. April is forecast at 1.25 million TEU, up 2.4%; May at 1.28 million TEU, down 0.7%; and June at 1.28 million, up 3%. The first half of 2012 should total 7.18 million TEU, up 0.5% from the same period last year.
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