We are pleased to have joining us Bernie Prince, President of the Farmers Markets Coalition.  Bernie will share information [...]]]> The 2012 Ohio Farmers’ Market Conference will be held on March 9-10, 2012 at the Nationwide and Ohio Farm Bureau 4-H Center on OSU’s main campus, 2201 Fred Taylor Drive, Columbus, Ohio 43210 (map).

We are pleased to have joining us Bernie Prince, President of the Farmers Markets Coalition.  Bernie will share information about farmers’ markets throughout the US and share best practices from many of the markets she has managed and visited.

Visit the FMMN Conference Page for more details.

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The conference will begin with a keynote address, “Top Ten Trends in Local Foods and How [...]]]> The third annual “Living Your Small Farm Dream” Northeast Ohio Small Farm Conference and Trade Show, will be from 8:30 a.m. to 4:15 p.m. on March 31, 2012 at the R.G. Drage Career Center in Massillon, Ohio.

The conference will begin with a keynote address, “Top Ten Trends in Local Foods and How You Can Profit from Them,” by Eric Barrett, OSU Extension. That will be followed by 23 breakout sessions, including: Managing the Woodlot for Profit; Leasing Farmland for Oil and Gas Production; Raising and Marketing Meat Goats; How You Can Profit from Social Media Such as Facebook and Twitter; Utilizing High Tunnels to Extend the Growing Season; High Tunnels and Organic Cost-Share Programs; Grape Production and Wine Making; Direct Marketing of Meat in Ohio; Herb and Cut Flower Production; Irrigation Systems for Fruits and Vegetables; Tax Issues for Small Farms; Pasture Raised Poultry; Rules and Regulations for Direct Marketing Food Products; Maple Production; Oil and Gas Legal Issues; Managed Grazing; Resources Available for Small or Beginning Farmers; and Starting an Orchard.

The cost is $50 per person. The registration deadline is March 22. For more information, see http://go.osu.edu/sfmtgs or contact OSU Extension educator Mike Hogan at hogan.1@osu.edu or 330-324-6341.

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I wanted to provide an update on the new IRS rules for farmers’ markets that accept SNAP benefits.  Read below for more information as well as view the attachment.  For those of you who work with ACS to accept SNAP, you can contact them directly.  Their information [...]]]> By: Christie Welch, Farmers’ Market Specialist (welch.183@osu.edu)

I wanted to provide an update on the new IRS rules for farmers’ markets that accept SNAP benefits.  Read below for more information as well as view the attachment.  For those of you who work with ACS to accept SNAP, you can contact them directly.  Their information is included in the attachment.  For those of you who work with a Third Party Processor (TPP) you should receive information from them.  In addition, the Farmers’ Market Coalition conducted a webinar on this topic.  You can view a recording of the webinar on their YouTube Channel:  http://www.youtube.com/user/fmcorg.

Here is the information I received from Ohio Dept. of Job and Family Service:

Here are some key points regarding the new 1099K IRS reporting requirement.  This was drafted from information in the FNS letter and initial ACS letter that were mailed last fall; plus we added a few FAQs for clarification.  Please note the ACS phone number listed at the end of this overview is a special ACS number specifically for responding to retailer 1099K questions regarding the ACS information.

For all retailers with a Food and Nutrition Service (FNS) certification number, the company you contract with for your EBT point of sale device is now required by law to report to the IRS how much you have received in Food Assistance Program redemption payments.

In Ohio, Affiliated Computer Services (ACS) is the company that provides Point Of Sale devices (POS) to merchants who are EBT Only retailers.   If you process thru a Third Party Processor (TPP) or use your point of sale device to also process debit and credit cards, then the company you have a contract with should have contacted you regarding this new IRS reporting requirement.

The reporting of redemption payments to the IRS for merchandise paid for by Food Assistance Program funds will begin January 1, 2012 and includes all Food Assistance Program redemption payments received by the merchant during the calendar year.

For ACS to report to the IRS the amounts for your Food Assistance Program redemption payments, you must provide ACS with your Tax Identification Number (TIN); this is done by sending ACS a completed W-9 Form.  If you do not provide your TIN, the law requires ACS to withhold money from your settlement deposit for your Food Assistance redemption payments.  Any funds withheld are forwarded to the IRS.

It is important that ACS receives your completed W-9 form promptly to allow time for processing.  Failure to have your TIN on file with ACS on or before November 30, 2011 will result in a 28% IRS withholding on your Food Assistance redemption payment deposits beginning 1/1/2012.  You may also be subject to an IRS penalty.

FAQs

What is the latest time I can submit my TIN to avoid the withholding? ACS WILL NEED TO HAVE YOUR COMPLETED W-9 FORM NO LATER THAN NOVEMBER 30, 2011.  THIS WILL ALLOW TIME FOR YOUR TIN TO BE VALIDATED BY THE IRS AND THEN ENTERED INTO ACS SYSTEMS.

When will the 28% withholding take effect and what will this withholding be applied to? WITHHOLDING TAKES EFFECT JANUARY 1, 2012 AND WILL BE APPLIED TO DEPOSITS OF FOOD ASSISTANCE PROGRAM REDEMPTION PAYMENTS IF ACS DOES NOT HAVE YOUR VALIDATED TIN ON FILE.  For example, if a farmers market deposit of Food Assistance Program redemption payments is $100 and there is no valid TIN for the farmers market on file with ACS, then $28 would be withheld from the settlement deposit.  These withholdings will continue until a valid TIN is on file with ACS.  Note that when a correctly completed W-9 form is received, it could take a few weeks for a TIN to be validated by the IRS and entered into the ACS systems.

How do I recover any funds withheld? FUNDS THAT ARE WITHHELD WILL BE APPLIED TO YOUR TAXES OWED TO THE IRS FOR 2012.  WHEN YOU FILE YOUR TAXES IN 2013 FOR CALENDAR YEAR 2012, ANY OVERPAYMENTS WILL BE RETURNED AS A TAX REFUND BY THE IRS.  Note: the IRS requires that any funds withheld from a Food Assistance Program settlement deposit be submitted to the IRS daily, thus ACS cannot return any previously withheld funds to the merchant.

When will I receive my 1099 for filing my taxes? 1099K FORMS FOR PAYMENTS MADE IN CALENDAR YEAR 2011 WILL BE MAILED BY 1/31/2012 AND 1099Ks FOR PAYMENTS MADE IN 2012 WILL BE MAILED BY 1/31/2013.  1099K FORMS WILL BE SENT TO THE MERCHANT’S ADDRESS THAT ACS HAS ON FILE.  Note: ACS receives merchant address information from FNS based on the address you provide to FNS.  Also note: no withholding has taken place for any payments made in 2011 but a 1099K will be issued for these payments; any withholding for payments made in 2012 will be applied to your 2012 taxes when you file your taxes in 2013.

If you have any questions about this IRS reporting requirement and potential withholding, please refer to the IRS website at http://www.irs.gov/localcontacts/index.html or contact your tax professional.

If you have questions regarding your retailer information on file at ACS, please call ACS at 1-866-528-1127 between the hours of 8:00am and 8:00pm Eastern time.

Let me know if you have any questions or need anything else on this topic.

Thomas W. Powers
Program Manager
State Enterprise Solutions
Affiliated Computer Services, Inc.
A Xerox Company
294 East Campus View Blvd.
Columbus, OH  43235

cel 614.483.9171
tel  614.985.4560

Please don’t hesitate to contact me if you have questions.

Christie

Christie Welch, Farmers’ Market Specialist
The Business Development Network
at The OSU South Centers
1864 Shyville Rd.
Piketon, OH 45661
welch.183@osu.edu
740-289-3727 Ext. 234
800-860-7232 (Ohio only) Ext. 234
740-289-4591 (Fax)
http://ohiofarmersmarkets.osu.edu

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Local Foods week is just around the corner. Celebrate in your community by visiting a farmers’ market or local farm store.

What are you doing to celebrate local food? Share your events and activities by leaving us a comment. Related Posts: [...]]]> Sept. 30th to Oct. 8th

Local Foods week is just around the corner. Celebrate in your community by visiting a farmers’ market or local farm store.

What are you doing to celebrate local food? Share your events and activities by leaving us a comment.

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Date Posted: September 22, 2011 Applications Due: October 10, 2011

Salary: 11,000 – 13,000 per year

Hours: Part-time position

(Expected to be at all markets: Summer 7:30 am – 12:30 pm, Winter 8:30 am – 2 pm

Supervisor: Olde Worthington Business Association Executive Director

Now there is one more report to support this.  Read Market Forces: Creating Jobs through Public Investment in Local and Regional Food Systems | Union of [...]]]> Investing in the local food system is a win on so many levels.  Farmers can earn a living, shoppers get fresher, more nutritious food, local economies grow stronger.

Now there is one more report to support this.  Read Market Forces: Creating Jobs through Public Investment in Local and Regional Food Systems | Union of Concerned Scientists.

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Earlier this year, IRS issued a final rule on “Information Reporting Requirements Payments Made in Settlement of Payment Cards and Third Party Network Transactions” (6050W for short). Many of you have been eagerly awaiting a final word regarding the reporting obligations of markets operating [...]]]> An update from FMC, for farmers’ markets that accept SNAP:

Earlier this year, IRS issued a final rule on “Information Reporting Requirements Payments Made in Settlement of Payment Cards and Third Party Network Transactions” (6050W for short). Many of you have been eagerly awaiting a final word regarding the reporting obligations of markets operating scrip systems. Are they required to issue 1099s to each individual farmer to whom they reimburse token purchases?

Since early spring, FMC has been engaged in discussions about potential interpretations and implications, and, with the help of pro bono legal guidance and the research efforts of members like the Farmers’ Market Federation of New York, gone back and forth with officials in IRS and USDA. In early June, staff in Maine Representative Chellie Pingree’s office took the lead on a letter on behalf of fourteen House members urging IRS to clarify their interpretation and eliminate uncertainty around the requirements. By the way, below this message is a list of those Representatives, so that you can send them a thank-you email!

I’m writing today to let you know that the saga reached a new milestone last week when the IRS came to determination about how farmers markets operating scrip systems are to be considered for purposes of reporting electronic transactions.  In short, it’s good news. Below is text, reviewed and developed in cooperation with IRS, about how they interpret the 6050W rule.

Farmers Markets Requirements Concerning IRS 6050W

A central payor in a farmers market scenario may have an obligation to issue information reports (via a 1099-K) documenting payments made to market stall merchants if their relationship meets the definition of a third party network and if the number and amount of the transactions exceeds certain thresholds.

A third party network is any arrangement which involves the establishment of accounts with a central organization by a substantial number of persons (50 or more, according to the legislative history). Third party network arrangements, in a farmers market context, may include scrip currency programs. In such arrangements, customers use electronic payment to receive approved scrip from a central payor (the farmers market), which is then exchanged for goods with individual market stall-holders, who are reimbursed by the central payor (the farmers market).  Third party network transactions are reportable only if total annual transactions with respect to a particular payee exceed $20,000 and 200 in number.


Thus, small farmers markets (those with 50 or fewer stall merchants) are not subject to 6050W because they are not third party networks.  Larger farmers markets that constitute third party networks are subject to 6050W only to the extent that payments to a particular stall merchant involve more than 200 transactions and exceed $20,000.  (Note: “transactions” refers to the exchange of scrip between farmer and farmers market, not between customer and farmer).


Documentation:
A central payor is responsible for keeping books and records to substantiate that he/she is exempt from 6050W information reporting as a third party network. The primary reasons a small farmers market would be outside the scope of 6050W would be because (1) there are not a “substantial number” of farmers (fewer than 50) to whom a central payor is making payments, (2) payments to any given farmer in the market by such a central payor do not exceed $20,000 in a calendar year or (3) transactions by any given farmer (in which the farmer exchanges redeemed scrip for cash by the central payor) do not exceed 200 in a calendar year.  Depending on the sophistication of the central payor (farmers market), much of this information is already being kept.  Information about the number of vendors to which the central payor makes payment, the number of transactions with each vendor, and the total amount paid out are all relevant items for documentation.  This information should be collected and maintained for each calendar year beginning January 1, 2011.  For more specific legal and taxation advice, farmers markets should seek services of a qualified tax professional.

More information about Internal Revenue Code section 6050W can be found on the IRS web site.  Third party networks subject to full reporting requirements under 6050W can preview form 1099-K here.

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2011 Farmers Markets accepting the Ohio Direction Card Related Posts: Reporting of SNAP Transactions [...]]]> This year the number of farmers’ markets accepting food assistance has grown.  If your market accepts the Ohio Direction Card make this link part of your outreach plan.   The document contains a listing of all Ohio’s participating markets by county.

2011 Farmers Markets accepting the Ohio Direction Card

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