Who Receives a 1099-K?
Businesses or individuals who:
- Accept payments via credit/debit cards.
- Use third-party payment networks for business transactions.
As of 2024, the reporting threshold is:
- $5,000 in gross transactions for the calendar year.
Key Information on a 1099-K
The form includes:
- Gross amount of transactions processed.
- Payee's information (e.g., name, address, Taxpayer Identification Number or TIN).
- Transaction details, such as monthly breakdowns.
- Deadline to file: Tax forms need to be post-marked to the recipient by January 31st, 2025.
Who Files a 1099-K Form?
A Payment Settlement Entity (PSE) is an organization that facilitates payments between parties for payment cards or third party payment networks. GrowthZone is a PSE via our GrowthZone Pay offering and will need to file 1099-Ks for our customers.
Who will be Receiving a 1099-K?
Currently we have ~2,600 connected accounts that will receive a 1099-K for 2024.
Customers who meet the requirements above will receive a 1099-K via U.S. Mail to the company address associated to the gateway. Customers should share this information with their tax consultant.
FAQ Questions
- What if I did not receive the form?
- Customers who feel they have met the requirements but did not receive a form can email gzquestions@ to request one.
- What if it was sent to the wrong person?
- Customers can email gzquestions@ with requests for changes. GrowthZone may call the organizational number to confirm the change. Regardless of the contact person, the information is for the organization and can be used for tax purposes.
- How do we update who gets the form?
- Customers can email gzquestions@ with requests for changes. GrowthZone may call the organizational number to confirm the change.
- What happens if this is reported under my social?
- Customers can email gzquestions@ with requests for changes. GrowthZone may call the organizational number to confirm the change.
- Why is my business's name truncated/look different?
- There is a limit on the number of characters that can be available, so the name of your business name may be shortened. You can rely on the EIN or SSN of the business.
Other Potential Customer Questions
1. What do I do with this form?
GrowthZone is required to provide this for informational purposes only. According to federal law, all income is taxable unless it is specifically excluded by tax law. Taxpayers should report any profits from selling goods or services, regardless if they receive a Form 1099-K.
Note: GrowthZone Pay customers have always had the ability to pull a report of their payments activity to use for tax filing purposes. If any additional questions arise, they will need to consult a tax advisor.
2. Why haven't I received this form before?
Over the past few years, the IRS have been in fluctuation about the reporting requirements and thresholds as it relates to 1099-Ks. They have now documented clearer instructions regarding who is required to issue a 1099-K and have lower thresholds for that reporting.
3. Will I be charged for updating my 1099?
If the correction is being made on the 1099-K because of incorrect data entered by the customer, then GZ expects customers to pay the cost for the corrected 1099. GZ paid the cost for the original filing, so the corrections will be covered by the customer. The cost varies based upon the type of correction needed.