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

Report payments from payment card transactions and third-party payment networks like PayPal, Stripe, and Venmo.

FIRE closes 19 November 2026

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 notice

What is Form 1099-K?

Form 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).

Who Must File 1099-K?

  • 1Payment processors (Stripe, Square, PayPal, etc.)
  • 2Credit card companies
  • 3Third-party settlement organizations (Venmo, Cash App, etc.)
  • 4Online marketplace facilitators (Amazon, Etsy, eBay)
  • 5App-based platforms processing payments

Filing threshold: $5,000 (2024+) / was $20,000 + 200 transactions

1099-K Filing Deadlines

Paper Filing

February 28

Electronic Filing

March 31

Recipient Copy

January 31

Penalties for Late or Incorrect Filing

$60-$310 per form depending on how late

2024 penalty tiers: $60/form (โ‰ค30 days late) โ†’ $130/form (31 days-Aug 1) โ†’ $310/form (after Aug 1) โ†’ $630/form (intentional disregard). Small business caps may apply.

1099-K Box-by-Box Guide

BoxDescription
Box 1aGross amount of payment card/third-party network transactions
Box 1bCard not present transactions
Box 2Merchant category code
Box 3Number of payment transactions
Box 4Federal income tax withheld
Box 5a-5lGross amount by month (January through December)

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TIN Verification

Verify taxpayer IDs before filing to avoid CP2100 notices and B-Notice requirements.

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eDelivery Portal

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Corrections & Void

File corrections or void forms electronically - no manual IRS correspondence needed.

1099-K Frequently Asked Questions

What changed with the 1099-K threshold?

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.

Do personal payments on Venmo trigger a 1099-K?

No. Personal payments (splitting dinner, gifts, reimbursements) are not reportable. Only goods and services transactions count toward the threshold.

I received a 1099-K but my net income is much less. What do I do?

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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