Do you currently accept credit cards?
SRS stands for “Settlement Reconciliation Service.” Per the requirements of the IRS (Internal Revenue Service), every processor needs to report your gross transaction amounts to them. As an Elavon merchant, you can now use the SRS Tool through www.merchantconnect.com to facilitate this process. The SRS Tool provides reports of the dollar amounts Elavon will send to the IRS. The merchant can also verify if their Taxpayer Identification Number (TIN) has been filed correctly.
After logging into MerchantConnect.com, the merchant will need to create another login account for the SRS Tool. The ID will ALWAYS be the merchant’s MID. The merchant can create their own password.
There will be four options once you log in to the SRS Tool:
Q: What is SRS?
A: SRS stands for “Settlement Reconciliation Service.” Per the requirements of the IRS (Internal Revenue Service) every processor needs to report your transaction amounts to them. The IRS also requires you to have the correct Federal Tax ID/ Social Security number. If you do not do this, you may be investigated by IRS and have 28% withholding on your daily credit card processing.
Q: What can SRS do for me?
A: Our processor, Elavon, will have an online report for you, which includes the new 1099K form. You will need to use this to file your taxes. You may give this to your accountant so he/ she can file your taxes properly.
Q: How come no other company (Costco/ Bank/ MSP/ Agent) is charging the SRS fee?
A: Every processor/ MSP has a different program built around the requirements coming from the IRS. If (Costco/ bank/ MSP/ Agent) do not have this for you, you may not be able to file your taxes properly.
Q: If other companies (Costco/ Bank/ MSP/ Agent) don’t offer the SRS service, does it mean those merchants will get investigated by the IRS and have 28% withholding?
A: If other companies do not offer a reporting service like SRS, you may not be able to file your taxes properly. As a result, you may be investigated by the IRS and have 28% withholding on your daily credit card processing.
Q: Can I have my CPA provide the reporting instead of the using SRS?
A: Your CPA can assist you to provide the reporting to file taxes. However, the SRS tool provides a report with standard deductions so your CPA may help you file taxes more easily without going through all of your statements and spending hours trying to figure out the amounts and the deductions.
Q: Does the SRS fee, billed in November 2011, cover the IRS reporting service for the next twelve months?
A: Since it is directly from the IRS to all processors, we only know you will get billed in November 2011 for January 2011 – December 2011. Future charges and requirements have not yet been disclosed by the IRS or the processor, if any.
Q: I did not agree to sign up for this service, why should I be responsible to pay this fee?
A: I understand that you did not agree to sign up for this service; however, this is a requirement from the IRS to all processors in which they need to report your credit card transaction information.
Q: I did not sign up for this service, therefore, I decide to close the account; I should not be obligated by the contract/agreement!
A: You may cancel your account at any time with obligation to fulfill the “Terms of Services” of Elavon / US Bank/ US Bankcard Services for any early termination fees that may apply. However, this service is required from the IRS to all processors. Therefore, if you decide to close your account, you are still obligated to report for this year. Also, according to Elavon’s Terms of Services on page 18, 18p:
Q: Can you show me where it says it is required by the IRS to report my gross transaction amounts?
A: Here you go, I can email the link to you. http://www.irs.gov/irb/2009-49_IRB/ar13.html Also, if you would like to have the IRS’ phone number, I can give it to you: