IRS form 1099-K for payment card reporting

All payments processors are required by law to issue the 1099-K form annually and report same to the IRS. In prior tax years, the threshold was set at $20,000 in gross payments and more than 200 transactions. Some states require higher threshold, please be aware there may be additional state requirements.

Chase Merchant Services does not have a minimum threshold for reporting purposes.

Beginning with the 2023 tax year, the updated IRS thresholds requires payment processors to track the gross dollar amount of payment transactions in excess of $600 made by all U.S.-domiciled merchants, regardless of the number of transactions.

The filing requirement applies to all U.S.-based businesses, including non-profits and other tax-exempt entities.

Note that non-US merchants may be required to certify (or re-certify) their foreign status in order to remain exempt from 1099-K reporting and backup withholding. Certification remains in effect for 3 years. If you need more information, please contact your Relationship Manager or Customer Support.

The “gross dollar amount” excludes any refunds, fees, and chargebacks. It simply reports the gross amount of money your customers originally paid to you in the previous calendar year. It is up to you and your tax professionals to determine what portion of this gross revenue represents taxable income.

You should receive your 1099-K by January 31 of the following year. Review an explanation and sample of a 1099-K form (PDF).

If you have further questions regarding Internal Revenue Code §6050W requirements, call us at 1-888-886-8869 or review the updated IRS FAQ at Understanding Your Form 1099-K.

The IRS also mandates that the 1099-K forms we file reflect your company’s IRS filing name and Tax Identification Number (TIN) – and NOT an account administrator name and social security number. Please review your TIN status in the Tax Information Section of your Merchant Services statement to be sure the records match. If this information does not match, your company could be subject to IRS-imposed federal tax withholding on future payment transactions.

If you recently received a communication from us, it is because we have discovered a discrepancy between the tax information on file with Merchant Services and the reporting information that you provided to the IRS. Please call us at 1-888-886-8869 immediately to correct this discrepancy or to update your TIN information if needed.

The IRS 1099 Form is a collection of tax forms documenting different types of payments made by an individual or a business that typically isn’t your employer. The payer fills out the form with the appropriate details and sends copies to you and the IRS, reporting payments made during the tax year. In some instances, a copy must also be sent to your state taxing authority. The payer is responsible for filling out the appropriate 1099 tax form and sending it to you. Such payments can be for rental income, earnings working as a freelancer or independent contractor, a tax refund received from your state or locality, gambling winnings, and more. Most 1099 forms are required to be provided by January 31st.

The 1099-K is a Federal tax reporting form that all third-party processors are required for all US accounts that process both 200 transactions and $20,000 in gross payments over the calendar year (not including taxes, fees, chargebacks or refunds). Please note that a few states have different reporting thresholds (see Section 3, below). The purpose of the 1099 is to report payments for the provisions of goods or services, which may be

• Form 1099-C is a tax form required by the IRS when debts have been forgiven or canceled
• Unlike 1099-K this can be sent to crowdfunding accounts
• Account that have $600.00 or more of debt will be reported to the IRS

A "B Notice" is a notification that one or more tax ID numbers were missing from a 1099 or do not match IRS records. The following accounts received B Notices for 2020 and have not replied with a W9 for their account.

• Add how to update address / EIN or any changes
• How to obtain copy
• Steps to take if 1099k was not received