Instructions For Form 1099-K - 2015
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52015
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
(TPSO), that is, the central organization that has the
unless otherwise noted.
contractual obligation to make payments to participating
payees of third party network transactions.
Future Developments
Note. Healthcare networks, in-house accounts payable
For the latest information about developments related to
departments, and automated clearing houses do not
Form 1099-K and its instructions, such as legislation
qualify as TPSOs and do not report under section 6050W.
enacted after they were published, go to
form1099k.
A participating payee is any person, including any
What's New
governmental unit (and any agency or instrumentality of a
governmental unit) who accepts a payment card, or any
Box 1b. Card Not Present transactions. Completion of
account number or other indicia associated with a
box 1b is now mandatory for 2015. It was optional on the
payment card, as payment or accepts payment from a
2014 form.
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 2015 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.
A third party payment network is any agreement or
Taxpayer identification numbers.
arrangement that provides for the following.
Backup withholding.
The establishment of accounts with a central
Penalties.
organization by a substantial number of providers of
Other general topics.
goods or services who are unrelated to the organization
You can get the general instructions at
and who have agreed to settle transactions for the
form1099k
or by calling 1-800-TAX-FORM
provision of the goods or services to purchasers
(1-800-829-3676).
according to the terms of the agreement or arrangement.
Standards and mechanisms for settling the
Frequently asked questions. To find frequently asked
transactions.
questions (FAQs) about Form 1099-K reporting, go to
Guarantee of payment to the persons providing goods
IRS.gov and enter “new payment card reporting” in the
or services (participating payees) in settlement of
search box.
transactions with purchasers pursuant to the agreement
or arrangement.
Specific Instructions
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
“Unrelated” means any person who is not related to
transactions for each calendar year. A PSE makes a
another person within the meaning of section 267(b) using
payment in settlement of a reportable payment
the rules of sections 267(c) and (e)(3), and 707(b)(1).
transaction, that is, any payment card or third party
Exception for payments made outside the United
network transaction, if the PSE submits the instruction to
States by U.S. payers or middlemen to offshore
transfer funds to the account of the participating payee to
accounts after 2010. For payments under contractual
settle the reportable payment transaction.
obligations entered into after December 31, 2010, a PSE
A PSE is a domestic or foreign entity that is a merchant
that is a person as described in Regulations section
acquiring entity, that is, a bank or other organization that
1.6049-5(c)(5) as a U.S. payer or U.S. middleman is not
has the contractual obligation to make payment to
required to file Form 1099-K for payments to a
participating payees in settlement of payment card
participating payee with a foreign address as long as,
transactions; or a third party settlement organization
prior to payment, the PSE has documentation on which
Dec 10, 2014
Cat. No. 54721E
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