Form 1099-K

Form 1099-K

A form that one files with the IRS to report the settlement of a debt on a gift card, credit card, or similar instrument by a third party.
References in periodicals archive ?
If you drive for Uber/Lyft, bring Form 1099-K and/or Form 1099-MISC, records of miles driven (which is available on your online profile).
6050W, payers are required to send a Form 1099-K, Payment Card and Third Party Network Transactions, to a payee who receives more than $20,000 and has more than 200 transactions during a calendar year.
In addition, the regulation further clarifies that participating payees (those who would receive the Form 1099-K) are persons who are providers of goods and services (Regs.
WePay has noted on its website that it received clarification from the IRS in 2015 that it is not required to send a Form 1099-K for payments made solely as gifts or donations (tinyurl.com/y7qyaare).
In 2015, WePay submitted a request to the IRS for a private letter ruling, that WePay is not required to file a Form 1099-K with respect to the processing of payments that are made solely as a gift or donation and not for the provision of goods and services.
She further noted that after consultation with outside tax counsel, the company determined that it did not have to send Form 1099-K to recipients of gifts or donations.
Taxpayers that sell products or services online or accept payment cards for sales, as well as their advisers, need to be aware of IRS notice letters relating to Form 1099-K, Payment Card and Third Party Network Transactions, so they may quickly respond to the IRS when necessary.
PSEs must file Form 1099-K with the IRS and participating payees.
Unlike with other Forms 1099, the IRS may be unable to verify a Form 1099-K amount based on a taxpayer's income tax return without first requesting additional information from the taxpayer.
According to the IRS, Form 1099-K reports the annual gross dollar amount of transactions a PSE settled for a participating merchant during the prior calendar year, on a month-by-month basis, and the merchant's legal name and taxpayer identification number (TIN) (see "General FAQs on Payment Card and Third Party Network Transactions," available at tinyurl.com/pxgn9ja).The reporting of both annual and monthly amounts is necessary to resolve differences between information returns and tax returns of fiscal-year filers.
6050W(c) and (e), PSEs must report on Form 1099-K (1) all payments made in settlement of payment card transactions (e.g., credit cards), and (2) payments in settlement of third-party network transactions if (a) gross payments to a participating payee exceed $20,000, and (b) there are more than 200 transactions with the participating payee.
Form 1099-K, Merchant Third Party Network Payments, will serve to report businesses total gross aggregate reportable paym transactions for the 2011 tax calendar.