{"id":22,"date":"2016-11-04T04:59:00","date_gmt":"2016-11-04T04:59:00","guid":{"rendered":"\/irs-form-1099\/post\/2016\/11\/04\/1099-k-form-reporting-requirements-for-third-party-transactions.aspx"},"modified":"2025-12-09T12:04:55","modified_gmt":"2025-12-09T12:04:55","slug":"1099-k-form-reporting-requirements-for-third-party-transactions","status":"publish","type":"post","link":"https:\/\/www.tax2efile.com\/blog\/1099-k-form-reporting-requirements-for-third-party-transactions\/","title":{"rendered":"Understanding about 1099-K Tax Form Reporting Requirements"},"content":{"rendered":"<p class=\"MsoNormal\" style=\"text-align: justify;\"><span style=\"font-size: 12.0pt; mso-bidi-font-size: 11.0pt; line-height: 115%; font-family: 'Times New Roman','serif';\">1099 K form<\/span><span style=\"font-size: 12.0pt; mso-bidi-font-size: 11.0pt; line-height: 115%; font-family: 'Times New Roman','serif';\"> is basically an IRS information return which is used for reporting some payment transactions for improving voluntary tax compliance. IRS 1099 K needs to be received by 31<sup>st<\/sup> January in the prior calendar year of receiving payments:<\/span><\/p>\n<ul>\n<li><span style=\"text-indent: -0.25in; font-size: 12pt; line-height: 115%; font-family: 'Times New Roman', serif;\">From payment card transactions like credit, debit or store-valued cards.\u00a0<\/span><\/li>\n<li><span style=\"text-indent: -0.25in; font-family: 'Times New Roman', serif; font-size: 12pt;\">In the settlement of third-party payment network transactions more than minimum reporting thresholds of gross payments exceeding $20,000 and above 200 transactions.<\/span><\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-87\" src=\"https:\/\/www.tax2efile.com\/blog\/wp-content\/uploads\/2017\/09\/17.Understanding-about-1099-K-Tax-Form-Reporting-Requirements.jpg\" alt=\"1099-K Tax Form Reporting Requirements\" width=\"450\" height=\"280\" srcset=\"https:\/\/www.tax2efile.com\/blog\/wp-content\/uploads\/2017\/09\/17.Understanding-about-1099-K-Tax-Form-Reporting-Requirements.jpg 450w, https:\/\/www.tax2efile.com\/blog\/wp-content\/uploads\/2017\/09\/17.Understanding-about-1099-K-Tax-Form-Reporting-Requirements-300x187.jpg 300w\" sizes=\"auto, (max-width: 450px) 100vw, 450px\" \/><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_76 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\r\n<div class=\"ez-toc-title-container\">\r\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\r\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\r\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"#\" data-href=\"https:\/\/www.tax2efile.com\/blog\/1099-k-form-reporting-requirements-for-third-party-transactions\/#Form_1099_Reporting_Requirements\" >Form 1099 Reporting Requirements<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"#\" data-href=\"https:\/\/www.tax2efile.com\/blog\/1099-k-form-reporting-requirements-for-third-party-transactions\/#The_Verification_Procedure\" >The Verification Procedure<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"#\" data-href=\"https:\/\/www.tax2efile.com\/blog\/1099-k-form-reporting-requirements-for-third-party-transactions\/#Filing_Procedures_and_Deadline\" >Filing Procedures and Deadline<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\r\n<h2 class=\"MsoNormal\" style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Form_1099_Reporting_Requirements\"><\/span><strong><span style=\"font-size: 12.0pt; mso-bidi-font-size: 11.0pt; line-height: 115%; font-family: 'Times New Roman','serif';\">Form 1099 Reporting Requirements<\/span><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p class=\"MsoNormal\" style=\"text-align: justify;\"><span style=\"font-size: 12.0pt; mso-bidi-font-size: 11.0pt; line-height: 115%; font-family: 'Times New Roman','serif';\">The 1099 K reporting requirements include that:<\/span><\/p>\n<p><span style=\"font-family: 'times new roman', times; font-size: medium;\">1. All payments made in the settlement of the payment of card transactions like a credit card.<\/span><\/p>\n<p><span style=\"font-family: 'times new roman', times; font-size: medium;\">2. Payments in the settlement of transactions of third party network if the gross payments for participating payee is more than $20, 000 and there are above 200 transactions with participating payee.<\/span><\/p>\n<h3 class=\"MsoNormal\" style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"The_Verification_Procedure\"><\/span><strong><span style=\"font-size: 12.0pt; mso-bidi-font-size: 11.0pt; line-height: 115%; font-family: 'Times New Roman','serif';\">The Verification Procedure<\/span><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p class=\"MsoNormal\" style=\"text-align: justify;\"><span style=\"font-size: 12.0pt; mso-bidi-font-size: 11.0pt; line-height: 115%; font-family: 'Times New Roman','serif';\">The verification procedure is carried out for ensuring that the tax returns are complete and correct by using the following steps:<\/span><\/p>\n<p class=\"MsoNormal\" style=\"text-align: justify;\"><strong><span style=\"font-size: 12.0pt; mso-bidi-font-size: 11.0pt; line-height: 115%; font-family: 'Times New Roman','serif';\">TIN Matching Program<\/span><\/strong><\/p>\n<p class=\"MsoNormal\" style=\"text-align: justify;\"><span style=\"font-size: 12.0pt; mso-bidi-font-size: 11.0pt; line-height: 115%; font-family: 'Times New Roman','serif';\">The <a href=\"https:\/\/www.tax2efile.com\/efile-1099-form\/irs-tin-matching-program\">TIN Matching Program<\/a> which is basically an internet-based pre-filing e-service can be used for ensuring that the 1099 K tax form that is submitted features the right TIN. This program allows you to carry out the verification of the TIN provided by the taxpayer against the IRS records before filing information returns.<\/span><\/p>\n<p class=\"MsoNormal\" style=\"text-align: justify;\"><strong><span style=\"font-size: 12.0pt; mso-bidi-font-size: 11.0pt; line-height: 115%; font-family: 'Times New Roman','serif';\">Name Control<\/span><\/strong><\/p>\n<p class=\"MsoNormal\" style=\"text-align: justify;\"><span style=\"font-size: 12.0pt; mso-bidi-font-size: 11.0pt; line-height: 115%; font-family: 'Times New Roman','serif';\">Name control is basically a series of characters that are obtained from the name of the taxpayer and the <a href=\"https:\/\/www.tax2efile.com\/efile-1099-form\/irs-tin-matching-program\">TIN on electronically filed<\/a> returns matching the records.<\/span><\/p>\n<h3 class=\"MsoNormal\" style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Filing_Procedures_and_Deadline\"><\/span><strong><span style=\"font-size: 12.0pt; mso-bidi-font-size: 11.0pt; line-height: 115%; font-family: 'Times New Roman','serif';\">Filing Procedures and Deadline<\/span><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p class=\"MsoNormal\" style=\"text-align: justify;\"><span style=\"font-size: 12.0pt; mso-bidi-font-size: 11.0pt; line-height: 115%; font-family: 'Times New Roman','serif';\"><a href=\"https:\/\/www.tax2efile.com\/efile-1099-form\">1099 form online<\/a> <\/span><span style=\"font-size: 12.0pt; mso-bidi-font-size: 11.0pt; line-height: 115%; font-family: 'Times New Roman','serif';\">is due for the merchants by 31<sup>st<\/sup> January. Additionally, this form is due to the IRS by the dates that follow:<\/span><\/p>\n<ul>\n<li><span style=\"text-indent: -0.25in; font-size: 12pt; line-height: 115%; font-family: 'Times New Roman', serif;\">28<sup>th<\/sup> February for filing on paper.<\/span><\/li>\n<li><span style=\"text-indent: -0.25in; font-size: 12pt; line-height: 115%; font-family: 'Times New Roman', serif;\">31<sup>st<\/sup> March for filing electronically.<\/span><\/li>\n<\/ul>\n<p class=\"MsoNormal\" style=\"text-align: justify;\"><span style=\"font-size: 12.0pt; mso-bidi-font-size: 11.0pt; line-height: 115%; font-family: 'Times New Roman','serif';\">It is necessary to <a href=\"https:\/\/www.tax2efile.com\/efile-1099-form\">E-file 1099<\/a> within these dates for the proper maintenance of records and for standing up to the expectations of the IRS.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>1099 K form is basically an IRS information return which is used for reporting some payment transactions for improving voluntary tax compliance. IRS 1099 K needs to be received by 31st January in the prior calendar year of receiving payments: From payment card transactions like credit, debit or store-valued cards.\u00a0 In the settlement of third-party [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":817,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[90],"tags":[],"class_list":["post-22","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-e-file-1099"],"post_mailing_queue_ids":[],"_links":{"self":[{"href":"https:\/\/www.tax2efile.com\/blog\/wp-json\/wp\/v2\/posts\/22","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.tax2efile.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tax2efile.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tax2efile.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tax2efile.com\/blog\/wp-json\/wp\/v2\/comments?post=22"}],"version-history":[{"count":1,"href":"https:\/\/www.tax2efile.com\/blog\/wp-json\/wp\/v2\/posts\/22\/revisions"}],"predecessor-version":[{"id":5191,"href":"https:\/\/www.tax2efile.com\/blog\/wp-json\/wp\/v2\/posts\/22\/revisions\/5191"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tax2efile.com\/blog\/wp-json\/wp\/v2\/media\/817"}],"wp:attachment":[{"href":"https:\/\/www.tax2efile.com\/blog\/wp-json\/wp\/v2\/media?parent=22"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tax2efile.com\/blog\/wp-json\/wp\/v2\/categories?post=22"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tax2efile.com\/blog\/wp-json\/wp\/v2\/tags?post=22"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}