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1099-K

Payment Card and Third Party Network Transactions

About Form 1099-K

A payment settlement entity (PSE) must file Form 1099-K for payments made in settlement of reportable payment transactions for each calendar year. A PSE makes a payment in settlement of a reportable payment transaction, that is, any payment card or third party network transaction, if the PSE submits the instruction to transfer funds to the account of the participating payee to settle the reportable payment transaction.

Form 1099-K, Payment Card and Third Party Network Transactions, is an IRS information return used to report certain payment transactions to improve voluntary tax compliance. This includes:

  • payment card transactions (e.g., debit, credit or stored-value cards), and/or
  • settlement of third-party payment network transactions above the minimum reporting thresholds of –
    • gross payments that exceed $600
IRS Instructions for Form 1099-K

Supported 1099-K Forms

We've made it easy to file your1099-K forms. Simply create a Yearli Premier account, import your data directly using our custom template, review your data and checkout. It's that easy. Yearli will file your forms to the IRS and send copies to your recipients.

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Who Files?

Every PSE or other party which submits instructions to transfer funds to the account of a participating payee, in settlement of reportable payment transactions, must file an information return (Form 1099-K) with respect to each participating payee.

What to Report?

Payment card transactions (e.g., debit, credit or stored-value cards), and/or in settlement of third-party payment network transactions above the minimum reporting thresholds of gross payments that exceed $600 to each participating payee.

Why File?

In many instances IRS penalties for not filing correct information returns (Code Section 6721) or correct payee statements (Code Section 6722) may apply. In addition, your payees need this information in order to report income to the IRS.

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Patrick G. | October 22, 2024
Very easy and cost effective method of filing a Form 941
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