Why is it important to provide merchant information for convenience checks?
A. Merchant information must be entered into PCMS for convenience checks because the information is used in 1099 reporting. At the end of each calendar year, 1099 reports are generated for certain vendor types that have received more than $600 in payments during the calendar year. The information required to a) determine if a merchant should receive a 1099 and b) generate the report if it is required is not available from Bank of America when a convenience check is used. Therefore it is your responsibility to ensure the merchant’s TIN, legal name and address are reported correctly.
