They have to send you a 1099-K like all other payment processors... if you made over $20,000 in gross sales in the year. I got one from PayPal in 2011.
I see, but I thought corporate tax was based off profit, not revenue?
How would PayPal know what your profit is? 1099s are informational forms. They inform you and the IRS how much someone else paid you. They are not directly used in computing your taxes. The purpose of the new 1099-K is to prevent you from receiving $x in credit card sales, then claiming you only had ($x / 2) in gross sales on your tax return.