Instructions for Payee
You have received this form because you have either: (a) accepted
payment cards for payments, or (b) received payments through a third
party network that exceeded $20,000 in gross total reportable
transactions and the aggregate number of those transactions
exceeded 200 for the calendar year. Merchant acquirers and third
party settlement organizations, as payment settlement entities (PSE),
must report the proceeds of payment card and third party network
transactions made to you on Form 1099-K under Internal Revenue
Code section 6050W. The PSE may have contracted with an
electronic payment facilitator (EPF) or other third party payer to make
payments to you.
If you have questions about the amounts reported on this form,
contact the FILER whose information is shown in the upper left corner
on the front of this form. If you do not recognize the FILER shown in
the upper left corner of the form, contact the PSE whose name and
phone number are shown in the lower left corner of the form above
your account number.
See the separate instructions for your income tax return for using
the information reported on this form.
Payee's taxpayer identification number (TIN). For your protection,
this form may show only the last four digits of your TIN (social security
number (SSN), individual taxpayer identification number (ITIN),
adoption taxpayer identification number (ATIN), or employer
identification number (EIN)). However, the issuer has reported your
complete TIN to the IRS.
Account number. May show an account number or other unique
number the PSE assigned to distinguish your account.
Box 1a. Shows the aggregate gross amount of payment card/third
party network transactions made to you through the PSE during the
Box 1b. Shows the aggregate gross amount of all reportable payment
transactions made to you through the PSE during the calendar year
where the card was not present at the time of the transaction or the
card number was keyed into the terminal. Typically, this relates to
online sales, phone sales, or catalogue sales. If the box for third party
network is checked, or if these are third party network transactions,
card not present transactions will not be reported.
Box 2. Shows the merchant category code used for payment card/
third party network transactions (if available) reported on this form.
Box 3. Shows the number of payment transactions (not including
refund transactions) processed through the payment card/third party
Box 4. Shows backup withholding. Generally, a payer must backup
withhold if you did not furnish your TIN or you did not furnish the
correct TIN to the payer. See Form W-9, Request for Taxpayer
Identification Number and Certification, and Pub. 505. Include this
amount on your income tax return as tax withheld.
Boxes 5a–5l. Shows the gross amount of payment card/third party
network transactions made to you for each month of the calendar
Boxes 6–8. Shows state and local income tax withheld from the
Future developments. For the latest information about developments
related to Form 1099-K and its instructions, such as legislation
enacted after they were published, go to www.irs.gov/Form1099K.