This article is for platforms and marketplaces. If you're not a platform or marketplace and accept payments with Stripe, see 1099-K tax forms.

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• What is a 1099-K form?
• Who files a 1099-K form?
• Who receives a 1099-K?
• Deadlines
• Extensions
• State filing considerations for 1099-K
• Mailing vs. e-filing with the IRS
• Penalties

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What is a 1099-K form?

The 1099-K is a tax information form generally used to report payments transactions. When using a 1099-K for information reporting, a copy must be delivered to the payment recipient and filed with the IRS.

Who files a 1099-K form?

Generally, the Payment Settlement Entity (PSE) is obligated to file 1099-Ks to their accounts that meet the 1099-K requirements.

There are two types of PSEs:

• Merchant Acquiring Entity (MAE) a merchant acquiring entity is a bank or other organization that has the contractual obligation to make a payment to a merchant in settlement of a payment card transaction.
• Third-Party Settlement Organization (TPSO) an organization that has the contractual obligation to make payments of third party network transactions, often handling payments between someone providing goods/services and the purchaser.

Who receives a 1099-K?

Recipients of a 1099-K are mostly merchants who have received payment using a TPSO or third-party payment network. For example, an Etsy seller would receive a 1099-K from Etsy. Whether the recipient receives a 1099-K or not, they are still required to include that payment information in their income tax filings.

Accounts that meets all of the following criteria in the previous calendar year should receive a 1099-K:

• The account is based in the United States (owners do not need to be US citizens) or the non-US account is for a US taxpayer
• And $5,000 total gross volume

Deadlines

The deadline to report 2024 tax forms to the IRS through Stripe 1099 is January 22, 2025. This ensures the forms are filed with the IRS and a copy is sent to the recipients before the IRS deadline of January 31, 2025.

If you were to file independently of Stripe 1099:

• The deadline to provide 2024 tax forms to the recipient is January 31, 2025.
• The deadline to report 2024 1099-Ks to the IRS is:
  • February 28, 2025, if paper filing.
  • March 31, 2025, if e-filing.

Extensions

Companies that need more time to file 1099-Ks to the IRS can submit the IRS Form 8809 to apply for an extension. If more time is needed to deliver the 1099-Ks to the recipients, a letter to the IRS is required to explain the reasons for delay. Extensions must be requested before the original due dates.

Learn more about extensions.

State filing considerations for 1099-K

States might have different requirements and separate deadlines for reporting and filing 1099-Ks. We recommend consulting a tax advisor to determine your state filing requirements.

Mailing vs. e-filing with the IRS

If you are issuing ten or more 1099 forms, you are required to e-file with the IRS.

Penalties

IRS penalties ranging from $60 to $310 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.

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.