Report payments from payment card transactions and third-party payment networks like PayPal, Stripe, and Venmo.
The IRS is retiring FIRE. It accepts information returns until 3 p.m. ET on 19 November 2026, and from 1 January 2027 IRIS is the only electronic channel - including for prior-year returns and corrections. New Transmitter Control Codes are no longer issued through FIRE, so a TCC application now has to go through IRIS.
IRS noticeForm 1099-K is issued by payment settlement entities (PSEs) to report gross payments made to merchants and businesses through payment cards (credit, debit, stored-value) and third-party network transactions. Starting with tax year 2024, the IRS lowered the reporting threshold to $5,000 (previously $20,000 and 200 transactions).
Filing threshold: $5,000 (2024+) / was $20,000 + 200 transactions
Paper Filing
February 28
Electronic Filing
March 31
Recipient Copy
January 31
$60-$310 per form depending on how late
2024 penalty tiers: $60/form (≤30 days late) → $130/form (31 days-Aug 1) → $310/form (after Aug 1) → $630/form (intentional disregard). Small business caps may apply.
| Box | Description |
|---|---|
| Box 1a | Gross amount of payment card/third-party network transactions |
| Box 1b | Card not present transactions |
| Box 2 | Merchant category code |
| Box 3 | Number of payment transactions |
| Box 4 | Federal income tax withheld |
| Box 5a-5l | Gross amount by month (January through December) |
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File electronically through IRIS, or through FIRE until it closes on 19 November 2026. No paper, no postage, instant confirmation.
Verify taxpayer IDs before filing to avoid CP2100 notices and B-Notice requirements.
Automatically print and mail recipient copies via USPS with delivery tracking (Lob API).
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File corrections or void forms electronically - no manual IRS correspondence needed.
The IRS has been phasing in a lower threshold. For 2024, reporting is required for gross payments exceeding $5,000. It was previously $20,000 AND 200+ transactions.
No. Personal payments (splitting dinner, gifts, reimbursements) are not reportable. Only goods and services transactions count toward the threshold.
1099-K reports GROSS payments before fees, refunds, and expenses. You report the gross on your tax return and deduct applicable business expenses separately.
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