If you’re running a platform or marketplace, you may be required to file 1099 tax forms with the IRS and state authorities. A 1099 form is used to report various types of income and payment transactions. For example, a marketplace may issue 1099s to summarize earnings for independent contractors, while a software platform may issue 1099s to summarize their customers’ payment transaction volume. There are several types of 1099 forms and we recommend consulting a tax advisor to determine your specific tax filing and reporting requirements.

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Looking for your 1099-K from Stripe? If you're not a platform or marketplace and accept payments with Stripe, read more about receiving a 1099-K.

If you’re running a platform or marketplace, you may be required to file 1099 tax forms with the IRS and state authorities, and deliver physical or electronic copies to your sellers or service providers in the US.

A 1099 form is used to report various types of income and payment transactions. For example, a marketplace may issue 1099s to summarize earnings for independent contractors, while a software platform may issue 1099s to summarize their customers’ payment transaction volume. In addition, you’re required to file a 1099 form for each person or business from whom you withheld taxes, regardless of the amount of the payment.

There are several types of 1099 forms. We’ve summarized the most common forms that platforms and marketplaces using Connect may need to consider. We recommend consulting a tax advisor to determine your specific tax filing and reporting requirements.

*For returns prior to 2023, platforms were only required to send 1099-Ks to merchants when the gross amount of total reportable payments exceeded $20,000 and the total number of such transactions exceeded 200 in a calendar year.

IRS penalties ranging from $50 to $290 per form may apply for each instance where you:

• Don’t file an information return with the IRS by the deadline
• Don’t provide the recipient a statement by the deadline
• Don’t report a Taxpayer ID (TIN)
• Report an incorrect TIN
• Report incorrect information
• Don’t provide the recipient with all required information
• Don’t e-file with the IRS when required to e-file

Larger penalties may be enforced where there is evidence of intentional disregard or neglect.

If you’re using Connect with Express or Custom accounts, you can create, manage, file, and deliver 1099s directly from the Stripe Dashboard.

This article is neither legal advice nor tax advice. We recommend that you speak to your tax advisor with any questions or concerns around tax reporting.