Keeping Up With 1099-K
10-19-2022
For the 2022 tax reporting season, payment facilitators (PayFacs) and other third-party companies are gearing up to issue many more 1099-K forms than in prior years. The American Rescue Plan Act of 2021 included legislation to align Form 1099-K reporting requirements with other Forms that report goods and services payments to nonemployees– such as Form 1099-NEC and Form 1099-MISC.
Starting with 2022 returns, PayFacs and other third parties must issue Form 1099-K when the aggregate of goods and services payments made to a payee in the calendar year is at least $600. Previously, reporting was only required when the payments aggregated to at least $20,000 and were paid over 200 separate transactions.
Any business required to issue and file 1099’s and other information returns faces inherent risks with the reporting processes. Whether it’s IRS penalty risk for issuing incorrect or late information on forms or internal operational risks in managing the associated backup withholding tax processes.
Attend the sponsored webinar on October 25 to hear from Sovos Solution Principal Wendy Walker to learn how to prepare for the 2022 tax reporting season, including:
- Challenges with preparing Form 1099-K information, including determining who is required to report the 1099-K, identifying what should be reported, and the requirements for reporting to the payees, the IRS, and the states.
- Information about new IRS and state filing systems and processes that will impact your organization– for 2022 and beyond.
- Getting your organization ready – to issue and file forms, respond to payee questions, and other tips to help make withholding and reporting more manageable.
About ETA
The Electronic Transactions Association (ETA) is the world’s leading advocacy and trade association for the payments industry. Our members span the breadth of significant payments and fintech companies, from the largest incumbent players to the emerging disruptors in the U.S. and in more than a dozen countries around the world. ETA members make commerce possible by processing approximately $56.75 trillion annually in purchases and P2P payments worldwide and deploying payments innovation to merchants and consumers.
ETAs membership spans the breadth of the payments industry to include independent sales organizations (ISOs), payments networks, financial institutions, transaction processors, mobile payments products and services, payments technologies, and software providers (ISV) and hardware suppliers. For more information, visit electran.org.