1099-K Reporting Requirements for Payment Settlement Entities

 

Reporting Requirements

For returns for calendar years prior to 2022, 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.

For returns for calendar years after 2021, PSEs are required by the American Rescue Plan Act of 2021 (ARPA) 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 $600, regardless of the number of transactions with the participating payee.
    Note: For transactions made after March 11, 2021, ARPA clarifies Form 1099-K reporting by third-party settlement organizations applies only for transactions for the provision of goods or services settled through a third-party payment network.

Verification Processes

We verify that tax returns are correct and complete using the following processes:

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: 

More Information

You can find more about Form 1099-K and other information returns at: