1099-K Form

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Form 1099-K is sent from transaction providers and processors to the retailers whose payments they process. Created as part of the 2008 Housing Assistance Tax Act, tax law requires credit card companies and third-party transaction processors to report the payment transactions they process on behalf of or between retailers to the retailers and the IRS.

Retailers who accept online credit card payments from customers will receive a 1099-K in the mail by January 31st of the following year if its annual processing activity meets the following guidelines:

  • Through third party processors, the volume is over $20,000 AND if there were more than 200 individual transactions.
  • In limited instances: If the sales volume is over $600 per year

If the processor did not prepare a 1099-K, a company should report their sales on Schedule C of the 1040 return and leave the 1099-K line blank.

Notice: River does not provide investment, financial, tax, or legal advice. The information provided is general and illustrative in nature and therefore is not intended to provide, and should not be relied on for, tax advice. We encourage you to consult the appropriate tax professional to understand your personal tax circumstances.