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.
Deadlines
See below for the deadlines relevant to the Form 1099-K:
- January 31st is the last day to deliver forms to recipients
- March 31st is the last day to submit filings
If a deadline falls on a weekend or holiday, it will be extended to the next business day. A 30-day extension is generally available for both of the deadlines above.
Thresholds
See below for the federal threshold, as well as for the specific state threshold, if lower than the federal. Please note that to the extent that there is any withholding, no threshold is applicable.
Please note: The federal threshold for the IRS that is listed applies to all tax years. Although there were some changes in recent years, the latest update was meant to be applied retroactively.
| Regime | Threshold |
|---|---|
| Federal |
Greater than $20,000 and more than 200 transactions Note that this threshold only applies to third party network transactions, and not payment card transactions. |
| Arkansas | $2,500 or more |
| District of Columbia | $600 or more |
| Illinois | $1,000 or more (must have 4 or more separate transactions) |
| Maryland | $600 or more |
| Massachusetts | $600 or more |
| Montana | $600 or more |
| New Jersey | $1,000 or more |
| Vermont | $600 or more |
| Virginia | $600 or more |
Resources
Please see the Form 1099-K – IRS Form & Instructions for official IRS information.
Please refer to the 1099-K - Data Requirements guide for detailed data requirements.
Below are the applicable CSV Ingestion Templates:
- Account Owner/Account CSV Template
- Transactions CSV Template
- 1099-K Form Data CSV Template – Only required if not sending transactions
A sample form is also attached to the bottom of this article for your reference.