Every January, our customers will receive 1099Ks from our payment processors. Here is a link that describes what a 1099K is, and who gets one:
The reason our customers receive these is because they, in the prior calendar year, received payments:
- from payment card transactions (e.g., debit, credit or stored-value cards), if:
- gross payments that exceed $20,000, AND
- more than 200 such transactions
Our processor only only sends 1099K for payments processed with Payment Cards (e.g. Credit Cards). They do not send 1099k's for Third Party ACH Network payments (e.g. eCheck/ACH).
If the total payments are below the threshold mentioned above, our processor will not send a 1099K. If the processor did not send you a 1099k they also did not send a 1099k to the IRS.
One quick thing to note: Some customers might be confused by the totals in the boxes on the 1099. This usually is because of the fact that the IRS requires processors to report “gross” income on the 1099K form, which doesn’t include returns, refunds, chargebacks, etc… here is a link to FAQs regarding these topics: http://www.irs.gov/uac/General-FAQs-on-New-Payment-Card-Reporting-Requirements
Here is a specific FAQ that may help, from their website:
Do payment settlement entities adjust the "gross amount" to account for fees, refunds, charge-backs or other costs and refunded amounts?
No. The "gross amount" is the total unadjusted dollar amount of the payment transactions for a participating payee. This amount is not to be adjusted to account for any fees, refunds, or any other amounts.