Form 1099-K, Merchant Card and Third Party Payments

Form 1099-K is used to report the proceeds of payment card and third party network transactions made to taxpayers. Merchant card and third party network payers, as payment settlement entities (PSE), must report the proceeds of payment card and third party network transactions made to taxpayers on Form 1099-K under Internal Revenue Code section 6050W.

Taxpayers may receive Form 1099-K if they accepted merchant cards for payments or because they received payments through a third party network that exceeded $20,000 in gross total reportable payment transactions, and the total number of those transactions exceeded 200 for the calendar year. See Form 1099-K Instructions for more information.