Form 1099 K Reporting Requirements for Payment Settlement Entities
Beginning in January 2012, payment settlement entities (PSEs) are required by the Housing Assistance Tax Act of 2008 to report on Form 1099-K the following transactions:
- All payments made in settlement of payment card transactions (e.g., credit card);
- Payments in settlement of third party network transactions IF:
- Gross payments to a participating payee exceed $20,000; AND
- There are more than 200 transactions with the participating payee.
We verify that tax returns are correct and complete using the following processes:
- TIN Matching Program
Use the IRS Taxpayer Identification Number (TIN) Matching Program an Internet based pre-filing e-service, to ensure the Forms 1099-K you submit has the correct TIN. The program permits you to verify the TIN furnished by the taxpayer against IRS records prior to filing information returns.
- Name Control
The name control (a sequence of characters derived from a taxpayer's name) and TIN on an electronically filed return must match our records. Refer to Reasonable Cause Regulations and Requirements for Missing and Incorrect Name/TINs for more information.
Filing Deadlines & Procedures
Your Form 1099-Ks are due to merchants by January 31. In addition, your Form 1099-K is due to the Internal Revenue Service by the following dates:
- February 28 for paper filing. For more information review General Instructions for Certain Information Returns.
- March 31 for electronic filing using the online FIRE System (Filing Information Returns Electronically). For more information review Publication 1220 (PDF).
You can find more about the 1099-K and other information returns at our Third Party Reporting Information Center.