Form 1099-K: Payment Card and Third Party Network Transactions

VOIDPaper only: marks a form on a sheet that should be ignored. It is not a correction; a filed return is undone with a corrected return.How corrections workCORRECTEDChecked on a return that replaces one already filed. Which fields to repeat, and whether two returns are needed, depends on the error.Type 1 vs Type 2 correctionsFiler's nameWhat goes hereThe name of the entity with the filing requirement: the payment settlement entity (PSE), or the electronic payment facilitator (EPF) or other third party that submits the instructions to transfer funds on the PSE's behalf.Watch forWhen an EPF pays for a PSE, the EPF files in place of the PSE. If two PSEs qualify for the same transaction, the one that submits the transfer instruction files unless the parties agree in writing on another.Check the filer blockBox 1a: Gross amount of payment card / third party network transactionsWhat goes hereThe gross amount of reportable payment card or third party network transactions for the year, with no adjustment for credits, cash equivalents, discounts, fees, refunds, shipping or any other amounts. Each transaction is valued on its date.ThresholdPayment card transactions: all amounts. Third party network transactions: only when the payee's gross exceeds $20,000 and transactions exceed 200.Watch forCard and network payments that would otherwise go on Form 1099-MISC or 1099-NEC are reported here instead.Click to open the row in the box tableFiler's street addressStreet or P.O. box of the filer, where the recipient can write about the form. Not matched against IRS records.Filer's room or suiteSecond address line, optional.Box 1b: Card not present transactionsWhat goes hereThe part of the gross amount from transactions where the card was not present or the card number was keyed in: typically online, phone or catalog sales.Watch forUse the same gross amount rules as box 1a: no reduction for fees, refunds, discounts or shipping.Click to open the row in the box tableFiler's city or townCity of the filer's address. A foreign filer gives the city and leaves the state blank.Filer's telephone numberWhat goes hereA telephone number for the filer.Watch forIt must let a payee reach a person knowledgeable about the payments reported on the form.Calendar yearThe year the payment was made, not the year you file. The 2026 forms cover payments in 2026 and are filed in 2027.The 2027 calendarBox 1c: Cash tipsWhat goes hereThe total cash tips included in box 1a.Watch forNew for 2026 under P.L. 119-21 section 70201. It is a breakout of box 1a, not an added amount, and box 1d must give the tipped occupation.Click to open the row in the box tableBox 1d: TTOCWhat goes hereThe Treasury Tipped Occupation Code for the payee's tipped work, up to two codes, from IRS.gov/TippedOccupations.Watch forTips earned in more than two occupations: enter any two. If any tips came from a nonqualifying occupation, one of the codes must be 000.Click to open the row in the box tableFiler's state or provinceTwo-letter state code for a U.S. address; the province for a foreign one.Filer's countryBlank or US for a domestic address; the country for a foreign filer.Filer's ZIP or postal codeFive or nine digits for a U.S. address; the foreign postal code otherwise.Box 2: Merchant category codeWhat goes hereThe four-digit merchant category code (MCC) for the payee's payment card transactions. If you use another classification system, assign the closest MCC.Watch forA TPSO, or a filer that uses no classification system, leaves it blank. A payee with several MCCs gets a form per MCC, or one form showing the MCC for the largest share of receipts.Click to open the row in the box tableBox 3: Number of payment transactionsWhat goes hereThe number of payment transactions processed through the payment card or third party network for the year.Watch forDo not count refund transactions.Click to open the row in the box tablePayment settlement entity (PSE)Check it whenThe filer is a PSE: a merchant acquiring entity that settles payment card transactions, or a third party settlement organization (TPSO) that settles third party network transactions.Watch forCheck the second filer box instead when the filer is an EPF or other third party paying on a PSE's behalf.Open this box on the IRIS field mapPayment cardCheck it whenThis form reports payment card transactions.Watch forIf you pay the same payee for both payment card and third party network transactions, file a separate Form 1099-K for each type.Open this box on the IRIS field mapElectronic payment facilitatorCheck it whenThe filer is an EPF or other third party that makes payments in settlement of reportable transactions on behalf of a PSE.Required whenYou check this box: enter the PSE's name and telephone number in the box above the account number.Open this box on the IRIS field mapBox 4: Federal income tax withheldWhat goes hereBackup withholding on the payments reported in box 1a, for payees who have not furnished their TIN in the manner required.ThresholdA TPSO backup withholds only if the payee is over $20,000 and over 200 transactions for the year, or the TPSO's payments to the payee in the prior year were reportable.Watch forReport backup withholding on the form even when the payment is below the usual threshold. The year's total goes on Form 945.Click to open the row in the box tableThird party networkCheck it whenThis form reports third party network transactions.ThresholdA TPSO reports a payee only if, for the year, gross payments exceed $20,000 and the number of transactions exceeds 200.Watch forPayment card and third party network amounts for one payee go on separate forms.Open this box on the IRIS field mapFiler's TINThe EIN the returns are filed under; it must match the filer name on the first line. A sole proprietor may use an SSN, with the owner's name first.Check the filer blockPayee's TINWhat goes hereThe participating payee's SSN, ITIN, ATIN or EIN.Watch forYou may truncate it on the payee statement, never on anything filed with the IRS. The filer's TIN may not be truncated on any form.Match it before you fileBox 5a: JanuaryWhat goes hereThe gross amount of reportable payment transactions for January, on the same gross basis as box 1a.Watch forNo reduction for credits, fees, refunds, discounts or shipping. The dollar amount of each transaction is determined on the date of the transaction.Click to open the row in the box tableBox 5b: FebruaryWhat goes hereThe gross amount of reportable payment transactions for February, on the same gross basis as box 1a.Watch forNo reduction for credits, fees, refunds, discounts or shipping. The dollar amount of each transaction is determined on the date of the transaction.Click to open the row in the box tablePayee's nameThe name the IRS has for this TIN: an individual's own name for an SSN, the legal name for an EIN; a DBA goes on the second line. This is what TIN matching compares.Which name goes firstBox 5c: MarchWhat goes hereThe gross amount of reportable payment transactions for March, on the same gross basis as box 1a.Watch forNo reduction for credits, fees, refunds, discounts or shipping. The dollar amount of each transaction is determined on the date of the transaction.Click to open the row in the box tableBox 5d: AprilWhat goes hereThe gross amount of reportable payment transactions for April, on the same gross basis as box 1a.Watch forNo reduction for credits, fees, refunds, discounts or shipping. The dollar amount of each transaction is determined on the date of the transaction.Click to open the row in the box tableBox 5e: MayWhat goes hereThe gross amount of reportable payment transactions for May, on the same gross basis as box 1a.Watch forNo reduction for credits, fees, refunds, discounts or shipping. The dollar amount of each transaction is determined on the date of the transaction.Click to open the row in the box tableBox 5f: JuneWhat goes hereThe gross amount of reportable payment transactions for June, on the same gross basis as box 1a.Watch forNo reduction for credits, fees, refunds, discounts or shipping. The dollar amount of each transaction is determined on the date of the transaction.Click to open the row in the box tablePayee's street addressWhere the recipient copy is mailed. From the W-9 line 5; the IRS does not match it, but an undeliverable copy is a furnishing failure.Payee's apartment or suiteSecond address line, optional. Keep it on its own line rather than appended to the street.Box 5g: JulyWhat goes hereThe gross amount of reportable payment transactions for July, on the same gross basis as box 1a.Watch forNo reduction for credits, fees, refunds, discounts or shipping. The dollar amount of each transaction is determined on the date of the transaction.Click to open the row in the box tableBox 5h: AugustWhat goes hereThe gross amount of reportable payment transactions for August, on the same gross basis as box 1a.Watch forNo reduction for credits, fees, refunds, discounts or shipping. The dollar amount of each transaction is determined on the date of the transaction.Click to open the row in the box tablePayee's city or townCity of the mailing address, from the W-9 line 6.Box 5i: SeptemberWhat goes hereThe gross amount of reportable payment transactions for September, on the same gross basis as box 1a.Watch forNo reduction for credits, fees, refunds, discounts or shipping. The dollar amount of each transaction is determined on the date of the transaction.Click to open the row in the box tableBox 5j: OctoberWhat goes hereThe gross amount of reportable payment transactions for October, on the same gross basis as box 1a.Watch forNo reduction for credits, fees, refunds, discounts or shipping. The dollar amount of each transaction is determined on the date of the transaction.Click to open the row in the box tablePayee's state or provinceTwo-letter state code; it also drives which state copies are needed when there is no withholding.State filing requirementsPayee's countryBlank or US for a domestic address. A foreign address is a flag to check whether a W-8 and Form 1042-S were the right documents instead.Foreign payeesPayee's ZIP or postal codeFive or nine digits for a U.S. address, or the foreign postal code.Box 5k: NovemberWhat goes hereThe gross amount of reportable payment transactions for November, on the same gross basis as box 1a.Watch forNo reduction for credits, fees, refunds, discounts or shipping. The dollar amount of each transaction is determined on the date of the transaction.Click to open the row in the box tableBox 5l: DecemberWhat goes hereThe gross amount of reportable payment transactions for December, on the same gross basis as box 1a.Watch forNo reduction for credits, fees, refunds, discounts or shipping. The dollar amount of each transaction is determined on the date of the transaction.Click to open the row in the box tableBox 2nd-tin: D TIN not.Check it whenThe IRS has notified you twice within 3 calendar years that this payee gave you an incorrect TIN. The IRS then sends you no further notices about this account.Watch forDo not check it if both notices came in the same year, or if they relate to returns for the same year. Those count as one notice, so no second B Notice is due.Open this box on the IRIS field mapPSE's name and telephone numberWhat goes hereThe PSE's name and a telephone number that lets the payee reach a person knowledgeable about the payments.Required whenThe filer is an EPF or other third party (the second filer box is checked).Box 6: State income tax withheldWhat goes hereState income tax withheld from these payments, if any. Up to two states, one per line.Watch forThe instructions text still describes box 6 as the state and box 8 as the tax withheld; the December 2026 form titles them the other way round. Follow the box titles on the form.Click to open the row in the box tableBox 7: State identification no.What goes hereThe filer's state identification number, the number that state assigned you.Watch forBoxes 6 to 8 are for your convenience and the IRS does not need them. A state that wants a paper copy gets Copy 1; the payee gets Copy 2.Click to open the row in the box tableBox 8: StateWhat goes hereThe abbreviated name of the state.Watch forKeep each state's figures on its own line, separated by the dash line.Click to open the row in the box tableAccount numberWhat goes hereYour account number for this payee.Required whenYou have more than one account for a payee and file more than one Form 1099-K for that payee. The IRS encourages an account number on every form.

Hover over a box for what goes in it; click to open its row in the table below. On a touch screen, tap the box to jump to the row.

Who must file Form 1099-K

A payment settlement entity (PSE) files Form 1099-K for each participating payee to whom it made payments in settlement of reportable payment transactions. There are two kinds. A merchant acquiring entity (a bank or processor obligated to pay merchants for card transactions) reports all payment-card payments, with no minimum. A third-party settlement organization (TPSO), the central organization in a third-party payment network such as a marketplace, gig platform or payment app, reports a payee only when gross payments exceed $20,000 and the number of transactions exceeds 200 in the calendar year. P.L. 119-21 restored those amounts retroactively, so the $5,000 and $2,500 transition figures never took effect.

An electronic payment facilitator or other third party that makes the payments on the PSE's behalf files instead of the PSE. Healthcare networks, in-house accounts payable departments and automated clearing houses are not TPSOs and do not file.

Threshold: $20,000 / 200, third-party network transactions: more than $20,000 in gross payments and more than 200 transactions; payment-card transactions: all amounts.

What is reported, box by box

Box titles follow the current revision of the form. The IRS reads the payer and recipient name, TIN, address, account number and the money boxes; the state boxes are for the state copy only.

Payments that are not reported on Form 1099-K

• A TPSO payee at or under $20,000 or at or under 200 transactions, unless the TPSO backup withheld (then a 1099-K is required to report the withholding).
• Payments to a payee whose card acceptance is only for the payee's own purchases (no participating payee), and payments to foreign payees documented on a W-8.
• Transactions settled outside a third-party payment network, such as a direct ACH between two businesses.
• Amounts a marketplace pays a seller that are not in settlement of card or network transactions may instead be 1099-NEC or 1099-MISC amounts.

Due dates and extensions

An automatic 30-day extension is available on Form 8809, filed by the due date on paper or through IRIS; a second 30 days requires a hardship showing. Recipient statements can be extended 30 days on Form 15397, online or by fax only. 10 or more information returns of any type in aggregate must be e-filed (T.D. 9972); IRIS is the only IRS intake system from filing season 2027, FIRE having been retired. A payer who e-files the originals must e-file the corrections.

For 2026 forms filed in 2027: January 31 falls on a Sunday, so that deadline moves to Monday, February 1, 2027; February 28 also falls on a Sunday, so the paper deadline moves to Monday, March 1, 2027. March 31 (electronic) and March 15 are weekdays. February 28 does not become February 29 in a leap year. The compliance calendar has every date with the weekend shifts applied.

Backup withholding and TIN matching

Section 6050W payments are backup-withholdable, with a threshold rule of their own for TPSOs: for calendar years after 2024 a TPSO must backup withhold only when the payee has exceeded $20,000 and 200 transactions in the current year, or when the payee had reportable payments in the preceding year. Merchant acquirers withhold from the first payment when a merchant's TIN is missing or the IRS has notified them it is wrong. Once withholding occurs, the 1099-K must be filed regardless of the thresholds. Report it in box 4 and on Form 945.

PSEs may use the IRS TIN Matching program, and the ones that run it at seller onboarding are the ones that stay off the CP2100 list. Real-time matching before the first payout is the standard control; see the marketplaces and gig platforms page.

Name and TIN errors on this form

Every information return is matched by the IRS on the first four characters of the payee's name (the name control) against the TIN. A mismatch produces a CP2100 line the following autumn and, unless the solicitation record is in order, a 972CG penalty the year after: $340 per return for 2026 forms filed in 2027 that are late or wrong, $690 for intentional disregard, with annual maximums of $4,191,500 ($1,397,000 for small filers) under Rev. Proc. 2025-32. The errors that recur on Form 1099-K:

• Sellers who sign up as a business but are people. The onboarding form asks for a business name, the seller types a store name, and the TIN is their SSN. The IRS knows that SSN as a person. Collect legal name and TIN type separately from the display name.
• Sole proprietor with an EIN. Allowed, but the first name line is still the individual's name, with the trade name second.
• Payees who migrate from SSN to a new LLC's EIN mid-year. Two payee records, two 1099-Ks, each with its own name/TIN pair; a single return with the new EIN and the old name mismatches.
• Foreign sellers. A W-8BEN or W-8BEN-E takes them out of 1099-K reporting; a U.S. address with no documentation presumes them U.S. and reportable.

The name control calculator shows what the IRS will derive from a name line, and the CP2100 guide covers what to do when the notice arrives.

Recipient statements and substitutes

The recipient statement for Form 1099-K need not be a copy of the official form: a substitute may be combined with other account statements or reports, provided every required item is numbered and titled as on the official form, the tax year, form number and form name appear together, the recipient instructions are included, and, for the forms Pub 1099 lists, a telephone number with direct access to someone who can answer questions is shown. Publication 1179 (Rev. Proc. 2026-18) has the specifications; logos, slogans and advertising are not permitted on the statement itself. Statements may be furnished electronically only to a recipient who has affirmatively consented in a way that shows they can access the format, after the disclosures in Pub 1099 part M, and must stay posted through October 15. Copy B may show a truncated TIN (xxx-xx-1234); the IRS copy never may. The consent rules for furnishing statements electronically are under review: Notice 2026-4 asked for comments (due May 23, 2026) on whether the broker rules, and then the rules for every other payee statement, should change.

Corrections and state copies

A wrong amount, code or checkbox is a Type 1 correction: one corrected return with the CORRECTED box checked. The wrong form type is a Type 2 correction: a zeroed-out copy of the original plus a new original, in that order. A wrong or missing payee TIN or name is also Type 2 on paper, but IRIS corrects it in one step on the original record (Publication 5717). Publication 1099 also says you are not required to file a correction for a missing or incorrect TIN if you meet the reasonable-cause standard, only to use the right TIN on the next return, although the IRS encourages the correction. Details and the paper error charts are on the 1099 corrections page.

Form 1099-K is a Combined Federal/State Filing program form: e-file it with the CF/SF election and the IRS forwards it to participating states. Whether that satisfies a given state, or the state wants a direct filing with its own transmittal, is on each state pages.

In the Internal Revenue Bulletin

Guidance published in the weekly Bulletin that bears on this form, 2024 to date; what each document does, not its text.

• T.D. 10053 (final regulations under section 3406, effective August 10, 2026) aligns the backup withholding threshold for third party network transactions with the 6050W reporting threshold, per participating payee: a TPSO withholds once the payee's transactions for the year exceed 200 and $20,000, and on every payment in a year that follows a year in which the payee had reportable payments. The proposed version was REG-112829-25.
• Before the 2025 tax law restored $20,000 and 200 transactions, Notice 2024-85 had set the enforcement thresholds at $5,000 for 2024 and $2,500 for 2025 with no transaction count; the law made the restoration retroactive, so those figures no longer apply to any year.
• A TPSO's new cash tips and occupation code fields follow the same tax year 2025 penalty relief as the 1099-NEC and 1099-MISC: Notice 2025-62. The occupation codes are from REG-110032-25.

Questions people ask about Form 1099-K

Other federal forms

1042-S · 1097-BTC · 1098 · 1098-C · 1098-E · 1098-F · 1098-Q · 1098-T · 1098-VLI · 1099-A · 1099-B · 1099-C · 1099-CAP · 1099-DIV · 1099-G · 1099-INT · 1099-LPS · 1099-LS · 1099-LTC · 1099-MISC · 1099-NEC · 1099-OID · 1099-PATR · 1099-Q · 1099-QA · 1099-R · 1099-S · 1099-SA · 1099-SB · 3921 · 3922 · 5498 · 5498-ESA · 5498-QA · 5498-SA · 5498-TA · W-2G · 1099-DA · Comparison table

Sources: IRS Publication 1099 (2026), General Instructions for Certain Information Returns, which replaced the separate General Instructions starting with tax year 2026; Instructions for Form 1099-K (Rev. December 2026); Pub 1099 (2026) What's New and Guide to Information Returns; IRC 6050WIRC 6050WInternal Revenue Code, Cornell LII, 3406; P.L. 119-21; Internal Revenue Bulletin: T.D. 10053; REG-112829-25; Notice 2024-85; Notice 2025-62. Threshold amounts are indexed for inflation from calendar year 2027; check IRS.gov/InflationAdjustment for the current year.