1099-K reporting requirements for payment settlement entities

Reporting requirements

For returns for calendar years prior to 2024, payment settlement entities (PSEs) are required by the Housing Assistance Tax Act of 2008 to report on Form 1099-K the following transactions:

• All payments made in settlement of payment card transactions (e.g., debit, credit, or stored-value cards);
• Payments in settlement of third party network transactions IF:
  • Gross payments to a participating payee exceed $20,000; AND
  • There are more than 200 transactions with the participating payee.

For returns for calendar years after 2023, PSEs are required by the American Rescue Plan Act of 2021 (ARPA) to report on Form 1099-K the following transactions:

• All payments made in settlement of payment card transactions (e.g., debit, credit, or stored-value cards);
• Payments in settlement of third party network transactions if gross payments to a participating payee exceed $600, regardless of the number of transactions with the participating payee.

Note: For transactions made after March 11, 2021, ARPA clarifies Form 1099-K reporting by third party settlement organizations applies only for transactions for the provision of goods or services settled through a third party payment network.

Verification processes

We verify that tax returns are correct and complete using the following processes:

• TIN Matching Program

  Use the IRS Taxpayer Identification Number (TIN) Matching Program, an Internet based pre-filing e-service, to ensure the Forms 1099-K you submit have the correct TIN. The program permits you to verify the TIN furnished by the taxpayer against IRS records prior to filing information returns.

• Name control

  The name control (a sequence of characters derived from a taxpayer's name) and TIN on an electronically filed return must match our records. Refer to Reasonable Cause Regulations and Requirements for Missing and Incorrect Name/TINs PDF for more information.

Filing deadlines & procedures

Your Form 1099-Ks are due to merchants by January 31. In addition, your Form 1099-K is due to the Internal Revenue Service by the following dates: 

• February 28 for paper filing. For more information review General Instructions for Certain Information Returns.
• March 31 for electronic filing using the online FIRE System (Filing Information Returns Electronically). For more information review Publication 1220 PDF.

More information

You can find more about Form 1099-K and other information returns at:

• FAQs on payment card and third party network payments
• Understanding your Form 1099-K
• Gig economy tax center