FILER S TIN OMB No. 1545-2205 PAYEE S TIN 1a Gross amount of payment card/third party network transactions Form 1b Card Not Present Payment settlement entity PSE Check to indicate transactions reported are Payment card Electronic Payment Facilitator EPF /Other third party Third party network 1099-K 2 Merchant category code 3 Number of payment 4 Federal income tax withheld 5a January 5b February PAYEE S name 5c March 5d April 5e May Street address including apt. no. 5f June 5g July 5h August...
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Everything You Need To Know About IRS 1099-K

Online retailers, time to review your IRS Form 1099-K!

Continuing with IRS Form 1099-K, used for reporting credit card and online payment transactions.

What is form IRS 1099-K?

Form 1099-K 'Payment Card and Third Party Network Transactions' is an IRS information return used to report payment transactions to improve voluntary tax compliance.  It requires credit card companies, and third party processors such as PayPal and Amazon to report the payment transactions they process on behalf of retailers.  You will receive Form 1099-K from each payment settlement entity from which you have received payments in the settlement of payment transactions.  The Form 1099-K gives you information about the gross amount of the payment transactions that needs to be reported.

Who needs an IRS 1099-K form?

Every retailer who accepts online accept credit card payments will receive Form 1099-K at the end of the year, if the sales volume through credit card companies is over $600/year, or if the volume of transactions through third party processors is more than 200 individual transactions and is the equivalent of $20,000.

The Payment Settlement Entity must also file an IRS 1099-K for payments made outside U.S. to an offshore account when the participating payee has the residential address or correspondence address of U.S. or participating payee’s submits payment in U.S. dollar.

Is IRS 1099-K accompanied by another form?

The 1099-K  form must be filed with IRS form 1096.  Many companies still produce a 1099-MISC form that was used before the implementation of the 1099 K.  You should keep detailed records so you can deduct any payments that may also have been reported on the 1099-MISC.

Report your 1099-K payments on Schedule C on a separate revenue line.  You can check you total business income by comparing the total revenue on Schedule C to your profit and loss statement from your own accounting system.

When is IRS 1099-K due?

You should receive copies of the IRS 1099-K by the end of January and they should be filed with the IRS by the end of February.

How do I fill out IRS 1099-K?

In the form, you need to provide payer’s information, business’s tax identification number, recipient’s identification number and its basic information. For more information on filling out the 1099-K and it's relationship to the 1099-MISC, check out the following video.

So all you online retailers, now that you've got it sorted out just in time for the busy holiday season, fill your IRS Form 1099-K and other tax documents with PDFfiller and consider trying our great integration with Xero accounting software!



Hello everyone today's video discussion is going to be on the matter of the format 1099 dash K now as I'm providing you with information I will likely refer to my notes from time to time now what is the form 299 k the form 1099 dash k was introduced by the IRS for tax year 2011 the form is used for the reporting requirements for payment settlement entities pses now what or who is a payment settlement entity apse a payment settlement entity is either a merchant acquiring entity for a payment card transaction or it is a third-party settlement organization examples of a merchant acquiring entity is either a bank american express mastercard visa etc acceptance of third-party settlement organizations is either paypal amazon or similar companies now on the form 1099 k payments are broken down monthly my suggestion would be to compare the amounts reported on the 1099 k with your settlement statements that you receive monthly just to be sure that what is reported on the 299 k is accurate note that the IRS will get a copy of the 1099 k so they will know what is reported by the PSE and it's up to you to make sure that the PSE has not overly reported payments made to you now the type of information that's reported on the 1099 k is all payments made in settlement of payment card transactions and that's for the merchant acquiring entities and for the third party settlement organizations it's a little bit tricky here so for the third party settlement organizations payments and settlement are reported if gross payments to a participating payee exceed twenty thousand dollars and there are more than 200 transactions with the participating payee again let me repeat that third-party settlement organizations report payments on the 1099 k if growth payments exceed twenty thousand dollars and there are more than 20 not 20 more than 200 transactions with that participating payee you can find more information regarding the third-party organizations again which are paypal Amazon and other organizations that are similar you can find this information on the IRS website by going to ww IRS gov now in regards to the 299 k the IRS has generated underreporting letters and these underreporting letters are in the event that you report something different on your tax return then what the PSE reported to the IRS currently there are four different types of letters there's the 50 35 5035 bears the 5036 bears the 5039 and the 5043 the letter 5035 5035 that is a soft notice basically if you receive that the IRS is informing you of something usually no action needs to be taken regarding this notice unless the IRS specifically states that a specific action needs to be taken as for the 50 36 if you receive this notice you need to return or review your return for accuracy and it's possible that this litter can generate an assessment or an audit now as for the 5039 this form will also require you or shall I say this letter will also require you to review your return for accuracy and with...