Form 1099-K - Payment Card And Third Party Network Transactions

Instructions for Payee

Box 1b. May show the aggregate gross amount of all reportable

You have received this form because you have either: (a) accepted

payment transactions made to you through the PSE during the

payment cards for payments, or (b) received payments through a third

calendar year where the card was not present at the time of the

party network that exceeded $20,000 in gross total reportable

transaction or the card number was keyed into the terminal. Typically,

transactions and the aggregate number of those transactions

this relates to online sales, phone sales, or catalogue sales. If the box

exceeded 200 for the calendar year. Merchant acquirers and third

for third party network is checked, or if these are third party network

party settlement organizations, as payment settlement entities (PSE),

transactions, card not present transactions will not be reported.

must report the proceeds of payment card and third party network

transactions made to you on Form 1099-K under Internal Revenue

Box 2. Shows the merchant category code used for payment card/

Code section 6050W. The PSE may have contracted with an

third party network transactions (if available) reported on this form.

electronic payment facilitator (EPF) or other third party payer to make

Box 3. Shows the number of payment transactions (not including

payments to you.

refund transactions) processed through the payment card/third party

If you have questions about the amounts reported on this form,

network.

contact the FILER whose information is shown in the upper left corner

Box 4. Shows backup withholding. Generally, a payer must backup

on the front of this form. If you do not recognize the FILER shown in

withhold if you did not furnish your taxpayer identification number

the upper left corner of the form, contact the PSE whose name and

(TIN) or you did not furnish the correct TIN to the payer. See Form

phone number are shown in the lower left corner of the form above

W-9, Request for Taxpayer Identification Number and Certification,

your account number.

and Publication 505, Tax Withholding and Estimated Tax, for

See the separate instructions for your income tax return for using

information on backup withholding. Include this amount on your

the information reported on this form.

income tax return as tax withheld.

Payee's identification number. For your protection, this form may

Boxes 5a-5l. Shows the gross amount of payment card/third party

show only the last four digits of your social security number (SSN),

network transactions made to you for each month of the calendar

individual taxpayer identification number (ITIN), adoption taxpayer

year.

identification number (ATIN), or employer identification number (EIN).

Boxes 6-8. Shows state and local income tax withheld from the

However, the issuer has reported your complete identification number

payments.

to the IRS.

Account number. May show an account number or other unique

Future developments. For the latest information about developments

related to Form 1099-K and its instructions, such as legislation

number the PSE assigned to distinguish your account.

enacted after they were published, go to

Box 1a. Shows the aggregate gross amount of payment card/third

party network transactions made to you through the PSE during the

calendar year.

Form 1099-K - Payment Card And Third Party Network Transactions - 2016 Page 5

Related Articles

Related forms

Related Categories