SRS is the result of a Government mandated tax reporting request placed on every processor and sponsor bank.
Q. What is SRS and Why is it being Charged?
A. SRS (Settlement Reconciliation Service) reflects the costs associated with new IRS-mandated processor reporting on volumes of transactions per merchant. The stated purpose of the new IRS reporting requirement is to close a potential loophole by ensuring that Merchant Tax Returns and Processor Volume Reporting by individual merchant are aligned.
Just recently the IRS has announced a delay re: part of the regulations. It is important to note that this isolated IRS delay DOES NOT affect the processor’s broader responsibility under new IRS regulations to report merchant volumes by TAX ID # starting with 1099K’s issued to merchants in January 2012.Q.
Q. Will each processor be charging some form of SRS to its merchants?
A. Since the IRS reporting requirement is universal, each processor will be packaging/passing on those compliance costs in some form to their merchant base. Elavon has elected to tailor their SRS reporting so that it not only meets compliance requirements but also adds valuable insight to merchants so they have more robust information with which to run and grow their business.
Q. What can/should Merchants do now?
A. Merchants can do 3 things in the wake of SRS
1. Visit www.Merchantconnectsrs.com and get familiar with the value added business information and reporting now available to all Elavon merchants.
2. Make sure the Merchant ID number you have on file with Elavon is the Merchant ID you wish to receive your 1099k form.
3. When Elavon issues your 1099k, ensure the volume of transactions you report in your tax returns is consistent with what Elavon is reflecting on your 1099K.