As a merchant, you may receive a Form 1099-K each year. This form is issued to report the total gross amount of payment transactions processed on your behalf. It’s part of IRS regulations to ensure accurate income reporting for tax purposes.
What Is Reported and Why
We are required by the IRS to report on all credit card and ACH transactions processed for your business during the previous calendar year. The reported amount reflects gross sales. It does not include refunds, fees, chargebacks, or other adjustments. Transactions are reported based on the settled transaction by December 31st (11 p.m. Eastern Time (ET) for cards and 9 p.m. ET for ACH). This requirement applies to all entities, including nonprofits.
When to Expect Your 1099-K
Your 1099-K will be postmarked by January 31st each year. Depending on mailing schedules, you may receive it on or before that date. If you haven’t received your form by February 10th, or need a replacement, please contact the software platform that processes your payments.
Multiple Forms or Incorrect Information
You may receive multiple 1099-Ks if you used more than one payment processor or changed providers during the year. If you believe the amounts reported do not belong to your business, reach out to the payment platform listed on the form for assistance.
Tax Reporting Guidance
While the 1099-K provides a summary of your gross transactions, how you report this on your tax return may vary. We recommend consulting a tax professional or visiting the IRS Website for guidance.