Instructions For Form 1099-K - 2018
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52018
Department of the Treasury
Internal Revenue Service
Instructions for
Form 1099-K
Payment Card and Third Party Network Transactions
Section references are to the Internal Revenue Code
has the contractual obligation to make payment to
unless otherwise noted.
participating payees in settlement of payment card
transactions; or a third party settlement organization
Future Developments
(TPSO), that is, the central organization that has the
contractual obligation to make payments to participating
For the latest information about developments related to
payees of third party network transactions.
Form 1099-K and its instructions, such as legislation
enacted after they were published, go to
IRS.gov/
Note. Healthcare networks, in-house accounts payable
Form1099K.
departments, and automated clearing houses do not
What’s New
qualify as TPSOs and do not report under section 6050W.
On-line pdf fillable Copies 1, B, 2, and C. To ease
A participating payee is any person, including any
statement furnishing requirements, Copies 1, B, 2, and C
governmental unit (and any agency or instrumentality of a
of Form 1099-K have been made fillable on-line in a pdf
governmental unit) who accepts a payment card, or any
format, available at IRS.gov/Form1099K. You can
account number or other indicia associated with a
complete these copies on-line for furnishing statements to
payment card, as payment or accepts payment from a
recipients and for retaining in your own files
TPSO in settlement of a third party network transaction.
Reminder
A payment card is any card, including any stored-value
card (having prepaid value, including gift cards), issued
In addition to these specific instructions, you should also
according to an agreement or arrangement that provides
use the 2018 General Instructions for Certain Information
for all of the following.
Returns. Those general instructions include information
One or more issuers of the cards.
about the following topics.
A network of persons unrelated to each other, and to
Who must file (nominee/middleman).
the issuer, who agree to accept the cards as payment.
When and where to file.
Standards and mechanisms for settling the transactions
Electronic reporting requirements.
between the merchant acquiring entities and the persons
Corrected and void returns.
who agree to accept the cards as payment.
Statements to recipients.
Taxpayer identification numbers (TINs).
A third party payment network is any agreement or
Backup withholding.
arrangement that provides for the following.
Penalties.
The establishment of accounts with a central
Other general topics.
organization by a substantial number of providers of
goods or services who are unrelated to the organization
You can get the General Instructions for Certain
and who have agreed to settle transactions for the
Information Returns at
IRS.gov/uac/about-form-1099
or
provision of the goods or services to purchasers
go to IRS.gov/Form1099K.
according to the terms of the agreement or arrangement.
Frequently asked questions. To find frequently asked
Standards and mechanisms for settling the
questions (FAQs) about Form 1099-K reporting, go to
transactions.
IRS.gov and enter “new payment card reporting” in the
Guarantee of payment to the persons providing goods
search box.
or services (participating payees) in settlement of
transactions with purchasers pursuant to the agreement
Specific Instructions
or arrangement.
A third party payment network does not include any
A payment settlement entity (PSE) must file Form 1099-K,
agreement or arrangement that provides for the issuance
Payment Card and Third Party Network Transactions, for
of payment cards.
payments made in settlement of reportable payment
transactions for each calendar year. A PSE makes a
“Unrelated” means any person who is not related to
payment in settlement of a reportable payment
another person within the meaning of section 267(b) using
transaction, that is, any payment card or third party
the rules of sections 267(c) and (e)(3), and 707(b)(1).
network transaction, if the PSE submits the instruction to
Exception for payments made outside the United
transfer funds to the account of the participating payee to
States by U.S. payers or middlemen to offshore
settle the reportable payment transaction.
accounts after 2010. For payments under contractual
A PSE is a domestic or foreign entity that is a merchant
obligations entered into after December 31, 2010, a PSE
acquiring entity, that is, a bank or other organization that
that is a person as described in Regulations section
Nov 15, 2017
Cat. No. 54721E
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Parent category: Financial