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status of that person as a foreign person remains valid

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

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

PSE. The facilitator is not required to have any

following the year in which the documentary evidence is

arrangement or agreement with the participating payee.

provided to the withholding agent or the day that a change

Payments need not come from the facilitator's account.

in circumstances occurs that makes any information on

The facilitator need only submit instructions to transfer

the documentary evidence incorrect.

funds to the account of the participating payee. The PSE

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

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

See part O in the 2016 General Instructions for Certain

against the cardholder's account.

Information Returns for more information on penalties.

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

Conversion of amounts paid in foreign currency.

sent you the payment(s), and

When a payment is made or received in a foreign

The PSE with respect to the participating payees to

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

whom you distribute the payments.

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 2016 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

spot rate or a monthly average spot rate. The convention

Statements to Payees

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 identification number on

or her delegate.

payee statements. Pursuant to Treasury Regulations

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

section 301.6109-4, all filers of this form may truncate a

Payments made by payment card or through a third party

payee’s identification number (social security number

payment network after December 31, 2010, that otherwise

(SSN), individual taxpayer identification number (ITIN),

would be reportable under sections 6041 (payments of

adoption taxpayer identification number (ATIN), or

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

employer identification number (EIN)) on payee

services and certain direct sales) and 6050W are reported

statements. Truncation is not allowed on any documents

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

the filer files with the IRS. A filer's identification number

For purposes of determining whether payments are

may not be truncated on any form. See part J in the 2016

subject to reporting under section 6050W, rather than

General Instructions for Certain Information Returns.

sections 6041 or 6041A, the de minimis threshold,

Furnishing statements electronically. Statements may

discussed later under Box 1a, is disregarded.

be furnished to payees electronically in lieu of a paper

Who Must File

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

information.

Every PSE or other party which submits instructions to

transfer funds to the account of a participating merchant,

For more information about the requirement to furnish a

in settlement of reportable payment transactions, must file

statement to each payee, see part M in the 2016 General

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

Instructions for Certain Information Returns.

participating payee for that calendar year.

2nd TIN Not.

Multiple PSEs. If two or more persons qualify as PSEs

for the same reportable transaction, the PSE that submits

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

the instruction to transfer funds must file the return.

IRS twice within 3 calendar years that the payee provided

However, the PSE obligated to file may designate another

an incorrect taxpayer identification number (TIN). If you

person to file the return, including the PSE not making

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

notices about this account.

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

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

However, if you received both IRS notices in the same

responsibility to file is liable for any applicable penalties

year, or if you received them in different years but they

under sections 6721 and 6722.

both related to information returns filed for the same year,

Electronic payment facilitator. If a PSE contracts

do not check the box at this time. For purposes of the

with an electronic payment facilitator (EPF) or other third

two-notices-in-3-years rule, you are considered to have

party to make payments in settlement of reportable

received one notice and you are not required to send a

payment transactions on behalf of the PSE, the facilitator

second “B” notice to the taxpayer on receipt of the second

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Instructions for Form 1099-K (2016)

Instructions For Form 1099-K - Payment Card And Third Party Network Transactions - 2018 Page 3

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