Florida § 212.134 - Information returns relating to payment-card and third party network transactions.

§ 212.134. Information returns relating to payment-card and third party network transactions.

(1) As used in this section, the term: (a) “Participating payee” has the same meaning as in s. 6050W of the Internal Revenue Code. (b) “Return” or “information return” means the Form 1099-K required under s. 6050W of the Internal Revenue Code. (c) “Third party network transaction” has the same meaning as in s. 6050W of the Internal Revenue Code. (d) “Third party settlement organization” has the same meaning as in s. 6050W of the Internal Revenue Code. (2) For each year in which a payment settlement entity, an electronic payment facilitator, or other third party contracted with the payment settlement entity to make payments to settle reportable payment transactions on behalf of the payment settlement entity must file a return pursuant to s. 6050W of the Internal Revenue Code, for participating payees with an address in this state, the entity, the facilitator, or the third party must submit the information in the return to the department by the 30th day after filing the federal return. The format of the information returns required must be either a copy of such information returns or a copy of such information returns related to participating payees with an address in the state. For purposes of this subsection, the term “payment settlement entity” has the same meaning as provided in s. 6050W of the Internal Revenue Code. (3) All reports of returns submitted to the department under this section must be in an electronic format. (4) Any payment settlement entity, facilitator, or third party failing to file the information return required, filing an incomplete information return, or not filing an information return within the time prescribed is subject to a penalty of $1,000 for each failure, if the failure is for not more than 30 days, with an additional $1,000 for each month or fraction of a month during which each failure continues. The total amount of penalty imposed on a reporting entity may not exceed $10,000 annually. (5) The executive director or his or her designee may waive the penalty if he or she determines that the failure to timely file an information return was due to reasonable cause and not due to willful negligence, willful neglect, or fraud. (6) All third party settlement organizations that conduct transactions involving a participating payee with an address in this state and that have a contractual obligation with such participating payee to make payment to the organizations shall create a mechanism for senders of payments to identify whether a payment to a payee is for goods and services or is personal. The mechanism must clearly indicate the sender’s requirement to indicate the appropriate transaction type. The sender of the payment is responsible for indicating the appropriate transaction type. All third party settlement organizations shall maintain records that clearly identify whether a transaction, as designated by the sender of the payment, is a transaction for goods and services or is personal. The information in the return submitted to the department under subsection (2) for such entities must be limited to transactions for goods and services. (7) Notwithstanding this section, subsection (6) does not apply to a third party settlement organization if a contractual agreement or arrangement to provide a third party payment network to a participating payee requires the third party settlement organization solely to settle third party network transactions for the provision of goods and services.