IRS 1099 Reporting

Learn about tax reporting and the 1099-K form to prevent backup withholding.

IRS 1099 Reporting FAQs

Learn about your 1099-K form. Count on BluePay to help you meet your tax obligations. Feel free to contact us if you have additional questions or issues that are not addressed here.

What is the Form 1099-K?

The IRS requires that a Payment Settlement Entity (PSE), such as BluePay, report the payment volume processed by U.S. merchants each calendar year. A 1099-K is the tax form that is given to the IRS to report your processing volume. BluePay also sends a copy to each individual business by tax ID so merchants know what information was reported. To see a sample of this form, click here.

Do I qualify for a 1099-K?

If your merchant account meets both of the following conditions, your business qualifies for IRS reporting:

  1. Processed more than $20,000 in gross sales for goods and services during the calendar year and
  2. Processed more than 200 transactions in the calendar year

These thresholds are based on the combined gross sales volume processed on all accounts that use the same Tax Identification Number (TIN). If you have multiple accounts operating under the same TIN, the processing volume will be combined for all accounts to see if you meet threshold.

How will I receive my 1099-K form?

If you qualify for a 1099-K, your form is physically mailed to you in the month of January for the prior year.

What if I have multiple accounts?

If you have multiple accounts that use the same TIN (Tax Identification Number), BluePay will combine the volume from all accounts to see if you meet the reporting qualifications of more than $20,000 and more than 200 transactions per calendar year. Each BluePay account with a unique TIN will have a separate form that you can use for your tax reporting. We cannot combine multiple accounts with separate TINs onto a single 1099-K form.

How are the numbers for the Amount and Transaction Count fields calculated?

These numbers are based on your gross sales on the transaction date of the sales. Cash sales are not included in reported numbers. Because of this requirement, the amount shown on the 1099-K will be different from the amount settled into your bank account due to possible refunds, chargebacks or holds. Keep in mind, there are fees that are deducted before funds are deposited into your bank account.

The transaction date is the date in our system that the transaction took place, which is based on a standardized time known as UTC. BlueView shows your transactions in your local time, so there may be small discrepancies if you have transactions occurring later in the day.

Do nonprofit organizations receive a 1099-K?

Yes. All accounts meeting the requirements, including nonprofits, will receive a 1099-K from BluePay.

How do I update my account information so everything is reported correctly?

To receive an updated 1099-K form, please make sure to update your TIN (Taxpayer Identification Number), your business tax filing name and business address in BlueView, or contact merchant services.

How do I receive a corrected form from a prior tax year?

If you need a form from a prior tax year corrected, update your TIN (Taxpayer Identification Number), your business tax filing name and business address in BlueView, or contact merchant services.

How do I submit my 1099-K?

BluePay is required by law to report each business’s processing volume directly to the IRS so you don’t have to.

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