What is a 1099-K Form?
With all the 1099 forms are involved in 1099 filing taxes, it can be difficult to sort out just which ones you need to fill out and which ones you don’t. However, if you own a small business and accept online credit card payments, you need to pay particular attention to the IRS Form 1099-K. In our changing world, this newest tax document represents a shift towards online commerce and credit card payments, and there is a lot of confusion about whom needs to file and what to do if you receive one.
The 1099-K form exists due to the 2008 Housing Assistance Tax Act. While it has nothing to do with housing, this form was created to hold online retailers responsible for reporting sales for tax purposes. Credit card companies and third-party processors like PayPal and Amazon are all required to report payment transactions on behalf of retailers. If you accept credit card payments or run an e-commerce business through a third-party processor, you may find a form 1099-K in the mail. On the 1099-K you will find listed the gross payment card and third party network transaction amounts. Both are required by law to be reported to the IRS, and an IRS 1099-K is one of many documents that are designed to ensure that self-employed persons report their earnings accurately.
Register for free to E-File 1099-MISC, 1099-K and 1099-INT form with ETAX1099 or Call us on 703-229-0326 for assistance on filing your 1099 taxes online.