1099K Frequently Asked Questions
Click here for a sample copy of Form 1099K
What do I do if I have questions?
Why did I receive a Form 1099-K?
Starting January 1, 2011, new Internal Revenue Service (IRS) regulations require all Acquirers to file a Form 1099K for all merchants. Because Global Payments processes credit card payments, we are subject to these new IRS regulations. For additional filing instructions please contact your tax advisor or go to www.irs.gov. IMPORTANT: Global Payments may not be your service provider, but provides electronic payment processing services and may provide deposits on behalf of your service provider.
Where will I receive my FORM 1099K?
Your Form 1099K will be sent to the address where you receive your normal mail correspondence.
When should I expect to receive my Form 1099K?
Form 1099K is required to be mailed by January 31, 2015.
Why is Global Payments listed as my Filer Name and not my service provider?
Global Payments may not be your service provider, but may provide electronic payment processing services on behalf of your service provider. The IRS requires that the provider who processes electronic payments and generates payment files be the one who files the Form 1099K. If you have questions, please contact your service provider listed on your merchant statement.
What information will be provided to the IRS in the Form 1099K?
The IRS will receive the same information that is provided to you on the Form 1099K. This will include your gross credit card payments for 2014, which will be reported by month along with your name, address and Tax Identification Number (TIN). What is a TIN and who needs to provide one? A Taxpayer Identification Number (TIN) is a number used by the IRS. Your TIN could be your Social Security Number (SSN) or you may have an Employer Identification Number (EIN) issued by the IRS.
What happens if I dont provide a TIN?
Global Payments is required by the IRS to collect your TIN for reporting purposes. If our records indicate a missing TIN or an unmatched TIN with the IRS system, you should have received mailing notifications or attempted calls from your service provider to obtain this information. If a valid TIN is not provided, your account could be subject to tax withholding of 28% of your credit card transaction volume based on IRS regulations, in addition to State tax withholding (percentage varies by state).
Will the Form 1099K replace the 1099 MISC forms?
Will I receive a Form 1099K for each merchant location?
Only one Form 1009K is provided for each TIN. If each of your locations has a unique TIN, a Form 1009K will be provided for each TIN. If you have multiple locations with the same TIN only one Form 1099K will be generated which will include the volume for all locations.
Will the Form 1099K include my gross sales amount or my net sales amount?
Your gross sales amounts will be shown on your Form 1099K. For example, if you made $40,000.00 in sales and paid $1,600 in fees, your Form 1099K will list $40,000.00 in gross sales. It will be your responsibility to determine the deductibility of fees that you have been charged when you file your tax return as normal. Chargebacks and returns are also included in the amount reported on the Form 1099K.
Is it possible to receive more than one Form 1099K?
Yes, if you changed credit card processing services within the reporting year and the payment processing company who generates the file is different, then it is possible to receive more than one Form 1099K. If you receive more than one Form 1099K, each should reflect a unique Filer name (which would indicate the payment processor, or Acquirer, that generated the payment file).