Every year, the United States IRS requires that VatPay provide a form called a 1099-K for each VatPay account that meets all of the following criteria in the previous calendar year:
- Account is based in the United States (Owners do not need to be US citizens.)
- More than $20,000 USD in total gross volume
- More than 200 charges
The 1099-K is a purely informational form that summarizes the sales activity of your account and is designed to assist you in reporting your taxes. It is provided to you and the IRS, as well as some US states. If you are a Connect platform looking for information on how 1099s are issued to managed accounts, please visit this link.
Massachusetts and Vermont recently changed their 1099-K requirements for the 2018 tax year. Stripe will provide a 1099-K form to accounts based in Massachusetts or Vermont who have $600 USD or more in total gross volume. All 1099-Ks that meet the IRS reporting threshold of $20,000 USD in total gross volume and 200 charges will be filed with the IRS. Any 1099-Ks with gross amounts below the IRS’s $20,000 threshold, that were delivered due to the change in state requirements, will only be filed with Massachusetts and Vermont. Learn more about these recent changes by visiting the taxing authority websites for Massachusetts and Vermont.
Below you’ll find a brief description of the information you can expect to find on the 1099-K that Stripe provides for you. For more help understanding your 1099-K go to IRS.gov. You can also download a blank example of the 1099-K form here.
Contact information for VatPay. Includes Filer’s name, address, and telephone number.
This is the contact information for your business or organization as it was provided to VatPay.
PSE’S name and telephone number.
Your VatPay account number
VatPay’ identification with the US government
Payee’s taxpayer identification number
This is either your Employer Identification Number (EIN) or Social Security Number (SSN) as it was provided to VatPay. For your protection, the form that we send to you may show only the last four digits. However, the copies that are sent to the IRS and state tax boards includes your complete identification number.
If your information needs to be updated, we probably already reached out to you to verify your information; however, you can also email us if you’d like to make a change.
The total gross volume of charges that you’ve made with VatPay in the calendar year
The total gross volume of charges that were made without the card present at the time of the transaction.
Merchant category code
The merchant category code for your business or organization
Number of payment transactions
The number of charges that you’ve made with Stripe in the calendar year
Federal income tax withheld
Backup withholding from your Stripe payments.
The total gross volume of charges that you’ve made with Stripe for each month of the calendar year
The state in which your income tax has been withheld
State identification number
Your identification number that is used for your state income tax withholding