Instructions For Form 1099-K - 2018 (Page 3 of 5) in pdf

U.S. person will not be required to file Form 1099-K if the

person to file the return, including the PSE not making

PSE obtains from the payee a Form W-8 or documentary

payment, if the parties agree in writing. If the designated

evidence that satisfies the requirements described in

person fails to timely file the return, the entity with the

Notice 2011-71.

responsibility to file is liable for any applicable penalties

under sections 6721 and 6722.

A PSE may accept a substitute form, as described in

Electronic payment facilitator. If a PSE contracts

Notice 2011-71, in lieu of Form W-8BEN so that a

with an electronic payment facilitator (EPF) or other third

participating payee can certify its non-U.S. status.

party to make payments in settlement of reportable

Documentary evidence, described in Notice 2011-71,

payment transactions on behalf of the PSE, the facilitator

submitted to establish the identity of the payee and the

or other third party must file Form 1099-K in lieu of the

status of that person as a foreign person remains valid

PSE. The facilitator is not required to have any

until the earlier of the last day of the third calendar year

arrangement or agreement with the participating payee.

following the year in which the documentary evidence is

Payments need not come from the facilitator's account.

provided to the withholding agent or the day that a change

The facilitator need only submit instructions to transfer

in circumstances occurs that makes any information on

funds to the account of the participating payee. The PSE

the documentary evidence incorrect.

can file Form 1099-K by designation if the parties agree in

A U.S. address is any address that is within the United

writing; however, the designation does not relieve the

States (the States and the District of Columbia).

facilitator from liability for any applicable penalties under

Non-reportable transactions. The following

sections 6721 and 6722 for failure to comply with the

transactions are non-reportable under section 6050W.

information reporting requirements.

A withdrawal of funds at an automated teller machine

See part O in the 2018 General Instructions for Certain

(ATM) via payment card, or a cash advance or loan

Information Returns for more information on penalties.

against the cardholder's account.

A check issued in connection with a payment card that

Aggregated payees. If you receive payments from a

is accepted by a merchant or other payee.

PSE on behalf of one or more participating payees and

Any transaction in which a payment card is accepted as

you distribute such payments to one or more participating

payment by a merchant or other payee who is related to

payees, you are:

the issuer of the payment card.

The participating payee with respect to the PSE who

sent you the payment(s), and

Conversion of amounts paid in foreign currency.

The PSE with respect to the participating payees to

When a payment is made or received in a foreign

whom you distribute the payments.

currency, the U.S. dollar amount must be determined by

converting the foreign currency into U.S. dollars on the

For more information on nominee/middleman reporting,

date of transaction at the spot rate (as defined in

see part A in the 2018 General Instructions for Certain

Regulations section 1.988-1(d)(1)) or according to a

Information Returns.

reasonable spot rate convention, such as a month-end

Statements to Payees

spot rate or a monthly average spot rate. The convention

must be used consistently for all non-dollar amounts

If you are required to file Form 1099-K, you must furnish a

reported and from year to year. The convention cannot be

statement to the payee.

changed without the consent of the Commissioner or his

Truncating recipient’s TIN on payee statements.

or her delegate.

Pursuant to Treasury Regulations section 301.6109-4, all

Reporting under sections 6041, 6041A, and 6050W.

filers of this form may truncate a payee’s TIN (social

Payments made by payment card or through a third party

security number (SSN), individual taxpayer identification

payment network after December 31, 2010, that otherwise

number (ITIN), adoption taxpayer identification number

would be reportable under sections 6041 (payments of

(ATIN), or employer identification number (EIN)) on payee

$600 or more) or 6041A(a) (payments of remuneration for

statements. Truncation is not allowed on any documents

services and certain direct sales) and 6050W are reported

the filer files with the IRS. A filer's TIN may not be

under section 6050W and not sections 6041 or 6041A.

truncated on any form. See part J in the 2018 General

For purposes of determining whether payments are

Instructions for Certain Information Returns.

subject to reporting under section 6050W, rather than

Furnishing statements electronically. Statements may

sections 6041 or 6041A, the de minimis threshold,

be furnished to payees electronically in lieu of a paper

discussed later under Box 1a, is disregarded.

format. See Regulations section 1.6050W-2(a) for further

information.

Who Must File

For more information about the requirement to furnish a

Every PSE or other party which submits instructions to

statement to each payee, see part M in the 2018 General

transfer funds to the account of a participating payee, in

Instructions for Certain Information Returns.

settlement of reportable payment transactions, must file

an information return (Form 1099-K) with respect to each

2nd TIN Not.

participating payee for that calendar year.

You may enter an “X” in this box if you were notified by the

Multiple PSEs. If two or more persons qualify as PSEs

IRS twice within 3 calendar years that the payee provided

for the same reportable transaction, the PSE that submits

an incorrect taxpayer identification number (TIN). If you

the instruction to transfer funds must file the return.

mark this box, the IRS will not send you any further

However, the PSE obligated to file may designate another

notices about this account.

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Instructions for Form 1099-K (2018)

Instructions For Form 1099-K - 2018 Page 3

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