Form 1099-K Frequently Asked Questions: Reporting

A. IRC 6050W, Returns Relating To Payments Made In Settlement Of Payment Card And Third Party Network Transactions, requires payment settlement entities (merchant acquiring entities and third party settlement organizations) to report payment card and third party network transactions.
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A. Information on your Form 1099-K may be used to compute your gross receipts or sales. You should follow the return instructions on the form you are completing to report your gross receipts or sales.

A. Gross payment card and third party network transaction amounts are reported to the IRS on Form 1099-K, Payment Card and Third Party Network Transactions.

A. Form 1099-K information is required to be filed with the IRS by February 28 of the year following the transactions if filed on paper. If filing electronically, it is required to be filed by the last day of March of the year following the transactions.

A. Entities required to file Form 1099-K, Payment Card and Third Party Network Transactions, must also furnish a statement to the payee with the same information reported to the IRS. Statements may be furnished in paper format (i.e., Copy B of Form 1099-K, Payment Card and Third Party Network Transactions) or electronically with the consent of the payee in accordance with Treas. Reg. 1.6050W-2. The statements must be furnished to the payee by January 31, of the year following the transactions.

A. The gross amount of reportable payment transactions by month and the calendar year are required to be reported for each participating payee. The name, address and taxpayer identification number of each participating payee must also be reported on the form.

A. No. The gross amount is the total unadjusted dollar amount of the payment transactions for a participating payee. It is not adjusted to account for any fees, refunds, or any other amounts.

A. IRC 6050W(a)(2) requires entities report the gross amount of the reportable payment transactions.