1099-K Reporting Requirements for Payment Settlement Entities
Beginning in January, 2012, 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., credit card);
- 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.
Filing Deadlines & Procedures
Your 1099-Ks are due to merchants by January 31, 2012. Electronically filed 1099-Ks are due to the IRS April 2, 2012 (normally March 31), while paper 1099-Ks are due February 28, 2012.
File your 1099-K electronically after January 4, 2012 through the FIRE (Filing Information Returns Electronically) option. Existing users may log in. New users may create an account and test their file before submitting. For more information, review the page numbered 20 (bottom, right) of Publication 1220 (PDF). If you are considering filing on paper, review General Instructions for Certain Information Returns.