The National Association of Trade Exchanges is at the forefront of all other barter associations in terms of establishing a cohesive relationship with the Internal Revenue Service. NATE operates in full compliance with the rules and regulations of the IRS, and all NATE members comply with 1099-B reporting requirements.
A testament to NATE’s innovative business partnership with the IRS is our IRS Media Center, which features the latest – and most comprehensive – business information released by the IRS. This information is posted regularly at this location on the NATE Web site.
A barter exchange is any person or organization with members or clients that contract with each other (or with the barter exchange) to jointly trade or barter property or services. The term does not include arrangements that provide solely for the informal exchange of similar services on a noncommercial basis.
TIN Matching is part of a suite of internet based pre-filing e-services that allow "authorized payors" the opportunity to match 1099 payee information against IRS records prior to filing information returns. An authorized payor is one who has filed information returns with the IRS in at least one of the two past tax years. Interactive TIN Matching will accept up to 25 payee TIN/Name combinations on-screen while Bulk TIN Matching will allow up to 100,000 payee TIN/Name combinations to be matched via a text file submission.
E-services users must register to have access to products such as TIN Matching. To complete the registration process visit www.irs.gov, enter e-services in the keyword search.
Information Returns can be filed electronically at http://fire.irs.gov via the FIRE (Filing Information Returns Electronically) System if your software can produce a file according to the specification in Publication 1220. IRS does not provide an electronic fill-in form option. FIRE is dedicated exclusively to the filing of Forms 1042-S, 1098, 1099, 5498, 8027, W-2G and QWF.
Electronic Commerce (e-Commerce) as defined by the U.S. Census Bureau. any transaction completed over a computer-mediated network that transfers ownership of, or rights to use, goods or services.
Businesses and individuals can use the Electronic Federal Tax Payment System to pay all their federal taxes electronically, 24 hours a day, 7 days a week, via the phone, personal computer (PC) software or the Internet. Visit the EFTPS web site for all the latest information! Or visit the Department of Treasury’s Financial Management Services web page on EFTPS.
This section provides information for tax practitioners and other tax professionals.
Tax Guide for Small Businesses – Bartering for Property or Services
Mar 3, 2006
Bartering is an exchange of property or services. You must include in your income, at the time received, the fair market value of property or services you receive in bartering. If you exchange services with another person and you both have agreed ahead of time as to the value of the services, that value will be accepted as fair market value unless the value can be shown to be otherwise.
2005 Publication 334 – Tax Guide For Small Business (For Individuals Who Use Schedule C or C-EZ)
Mar 1, 2006
Bartering for Property or Services
Bartering is an exchange of property or services. You must include in your gross receipts, at the time received, the fair market value of property or services you receive in bartering. If you exchange services with another person and you both have agreed ahead of time on the value of the services, that value will be accepted as the fair market value unless the value can be shown to be otherwise.
Form W-8BEN (Rev. February 2006) PDF
Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding
Feb 21, 2006
For broker transactions or barter exchanges, the beneficial owner is an exempt foreign person as defined in the instructions.
Publication 17 (2005), Your Federal Income Tax
Feb 9, 2006
Bartering is an exchange of property or services. You must include in your income, at the time received, the fair market value of property or services you receive in bartering. If you exchange services with another person and you both have agreed ahead of time as to the value of the services, that value will be accepted as fair market value unless the value can be shown to be otherwise.
2005 Publication 525 – Taxable and Nontaxable Income
Feb 7, 2006
You can receive income in the form of money, property,or services. This publication discusses many kinds of income and explains whether they are taxable or nontaxable. It includes discussions on employee wages and fringe benefits, and income from bartering, partnerships, S corporations, and royalties. It also includes information on disability pensions, life insurance proceeds, and welfare and other public assistance benefits.
Misuse of Disabled Access Credits - Misuse of the Law
Feb 6, 2006
The promotion indicates that the out-of-pocket cost is minimal and the remainder of the "cost" is a "bartering" transaction. In order to satisfy the barter provision, the businessperson has to provide names of other potential customers in addition to other promotional requirements.
The IRS disallows this credit because the purchasers are not incurring an expense that makes a business accessible to disabled individuals as required by the Americans with Disabilities Act of 1990 (ADA). Telephone companies have already ensured compliance.
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Feb 3, 2006
A barter exchange is any person or organization with members or
clients that contract with each other (or with the barter exchange) to jointly
trade or barter property or services. The term does not include arrangements
that provide solely for the informal exchange of similar services on a
noncommercial basis.
Feb 1, 2006
Barter Exchanges: The Internet has provided a medium for new growth in the bartering exchange industry. This section provides helpful information on bartering.
A Guide to Information Returns
Jan 31, 2006
The Information Reporting Program Website is designed to help you meet your Information Reporting Requirements. Included are help-line telephone numbers and direct links to aid you in reporting information returns. You will also find information about how to file returns electronically or magnetically.
Tax Topics - Topic 420 Bartering Income
Jan 17, 2006
Bartering occurs when you exchange goods or services without exchanging money. An example of bartering is a plumber doing repair work for a dentist in exchange for dental services. The fair market value of goods and services exchanged must be included in the income of both parties.
What is Taxable and Nontaxable Income?
Dec 1, 2005
You can receive income in the form of money, property, or services. This section discusses many kinds of income that are taxable or nontaxable. It includes employee wages and fringe benefits, and income from bartering and royalties. The information on this page should not be construed as all-inclusive. Other steps may be appropriate for your specific type of business.
IRS Stakeholder Partners Headliners
Sep 30, 2005
The Internet has provided the barter exchange industry a medium for rapid growth. The Internal Revenue Service is keeping pace with that growth by reminding barter exchanges that they must meet their tax reporting requirements by filing Form 1099-B, Proceeds From Broker and Barter Exchange Transactions (PDF), for all required transactions.
Publication 1281 (Rev. 8-2005)
Sept 14, 2005
Back-up Withholding for Missing and Incorrect Name/TIN(s) ...
Payments that may be subject to backup withholding include interest, dividends, rents, royalties, commissions, non-employee compensation, and certain other payments including broker proceeds and barter exchange transactions, reportable gross proceeds paid to attorneys, and certain payments made by fishing boat operators.
Retail Industry ATG - Chapter 2: General Issues in Retail
July 26, 2005
Bartering
The examiner is required to determine if bartering exists and if so, to determine if the value of bartered goods is properly recorded in income.
A barter exchange operates in much the same manner as a commercial bank. A business owner will complete a membership application, pay a fee and deposit funds in the exchange, which opens a barter account in the business’s name. This account provides barter script which may be used, like a check, at other participating barter businesses. The bartering organization will publish periodic catalogs from which participants may also locate items. When another participant purchases goods from the retailer by barter, the value of the goods is added to the retailer’s barter account.
Information Reporting Requirements for Barter Exchanges
Mar 11, 2004
The Internet has provided the barter exchange industry a medium for rapid growth. The Internal Revenue Service is keeping pace with that growth by reminding barter exchanges that they must meet their tax reporting requirements by filing Form 1099-B, Proceeds From Broker and Barter Exchange Transactions (PDF), for all required transactionsRevised IRS Voluntary Disclosure Practice
Dec 12, 2002
Examples of voluntary disclosures include: A disclosure made by a taxpayer of omitted income facilitated through a barter exchange after the IRS has announced that it has begun a civil compliance project targeting barter exchanges; however the IRS has not yet commenced an examination or investigation of the taxpayer or notified the taxpayer of its intention to do so. In addition, the taxpayer files complete and accurate amended returns and makes arrangements with the IRS to pay in full, the tax, interest, and any penalties determined by the IRS to be applicable. This is a voluntary disclosure because the civil compliance project involving barter exchanges does not yet directly relate to the specific liability of the taxpayer and because all other [elements] are met.
