If your business accepts merchant cards for payment or receives payment through a third party network such as Amazon, eBay and PayPal, or Stripe, you may receive form 1099-K. Form 1099-K is completed by payment settlement entities (PSE’s) such as banks, credit card companies and third party networks to report the proceeds of payment card and third party network transactions made to payees under Internal Revenue Code 6050W.

All businesses that accepted merchant cards for payment and businesses that accepted payments through a third party network that (1) exceeded $20,000 in gross total reportable transactions and (2) the total number of those transactions exceeded 200 for the calendar year, will receive Copy B of form 1099-K.

Copy B of 1099-K will include the following information:

  • Filer’s Name, Address, Phone
  • Filer’s Federal Identification Number
  • Payee’s Taxpayer Identification Number
  • Type of Filer (PSE or Third Party)
  • Gross amount of payments
  • Monthly amount of payments

As a business owner, you will need to compare the information provided on 1099-K to your gross receipts from that PSE and verify that the amounts track with what you will report on your taxes. Bottom line – The IRS will now have a record of your eBay, Amazon and PayPal transactions, so make sure you match up and report all income on your tax return. 

Look for your Copy B of 1099-K in the mail soon. PSE’s are required to provide form 1099-K to payees by January 31. You may receive the form by mail or electronically. If the PSE elects to send the form electronically, you will be required to provide consent for receipt of electronic statements. Consent can be granted electronically.

For more information from the IRS, go to www.irs.gov/form1099k