Form 1099-K and IRS audits/notices

The article is called “Red Letters.”   In 2013, the IRS started using Form 1099-K that reports merchant card transactions (like debit and credit cards) to match against business returns.  This matching program was the start of my problems for taxpayers.  The article explains the IRS compliance programs using Form 1099-K and what to do if you get a 1099-K IRS matching notice or audit.