Form 1099-K is a form used by payment processors to report income received through electronic transactions. This includes payments made via credit card, debit card, or other electronic means. The form is used to help the IRS track income and ensure that taxpayers are correctly reporting their earnings.
What Information Does it Include?
Information reported on Form 1099-K includes the total amount of money processed, the date of the transactions, and the merchant information. This form is generally sent out by the end of January following the year in which the transactions took place.
Do you have to file IRS Form 1099-K with your taxes?
If you receive Form 1099-K, you will need to include this information when filing your taxes. Be sure to keep accurate records throughout the year so that you can accurately report your earnings when tax time comes around.
While Form 1099-K is not required for all businesses, if your business processes a large volume of payments electronically, you are likely to receive this form. If you have any questions about whether or not your business needs to file IRS Form 1099-K, be sure to speak with your accountant or tax advisor.