Instructions for IRS Form 1099-k - Payment Card and Third Party Network Transactions 2018

January 1, 2018 "Instructions For Irs Form 1099-k - Payment Card And Third Party Network Transactions" contain the latest filing requirements for the IRS-issued Form 1099-K. Download your copy of the instructions by clicking the link below.

IRS Form 1099-K is tax form released and collected by the Internal Revenue Service of the United States.


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
reportable payment transaction, that is, any payment card
unless otherwise noted.
or third party network transaction, if the PSE submits the
instruction to transfer funds to the account of the
Future Developments
participating payee to settle the reportable payment
For the latest information about developments related to
Form 1099-K and its instructions, such as legislation
A PSE is a domestic or foreign entity that is a merchant
enacted after they were published, go to
acquiring entity, that is, a bank or other organization that
has the contractual obligation to make payment to
What’s New
participating payees in settlement of payment card
transactions; or a third party settlement organization
Online pdf fillable Copies 1, B, 2, and C. To ease
(TPSO), that is, the central organization that has the
statement furnishing requirements, Copies 1, B, 2, and C
contractual obligation to make payments to participating
of Form 1099-K have been made fillable online in a pdf
payees of third party network transactions.
format, available at You can
complete these copies online for furnishing statements to
Note. Healthcare networks, in-house accounts payable
recipients and for retaining in your own files
departments, and automated clearing houses do not
qualify as TPSOs and do not report under section 6050W.
Payments made to an offshore account. For tax years
beginning after December 31, 2017, the criteria for a
A participating payee is any person, including any
participating payee has been modified to exclude certain
governmental unit (and any agency or instrumentality of a
payees with only a foreign address. The Payment
governmental unit) who accepts a payment card, or any
Settlement Entity (PSE) is no longer required to file Forms
account number or other indicia associated with a
1099-K solely because payment is made in U.S. dollars to
payment card, as payment or accepts payment from a
such persons.
TPSO in settlement of a third party network transaction.
A payment card is any card, including any stored-value
In addition to these specific instructions, you should also
card (having prepaid value, including gift cards), issued
use the 2018 General Instructions for Certain Information
according to an agreement or arrangement that provides
Returns. Those general instructions include information
for all of the following.
about the following topics.
One or more issuers of the cards.
Who must file (nominee/middleman).
A network of persons unrelated to each other, and to
When and where to file.
the issuer, who agree to accept the cards as payment.
Electronic reporting requirements.
Standards and mechanisms for settling the transactions
Corrected and void returns.
between the merchant acquiring entities and the persons
Statements to recipients.
who agree to accept the cards as payment.
Taxpayer identification numbers (TINs).
Backup withholding.
A third party payment network is any agreement or
arrangement that provides for the following.
Other general topics.
The establishment of accounts with a central
organization by a substantial number of providers of
You can get the General Instructions for Certain
goods or services who are unrelated to the organization
Information Returns at
and who have agreed to settle transactions for the
go to
provision of the goods or services to purchasers
Frequently asked questions. To find frequently asked
according to the terms of the agreement or arrangement.
questions (FAQs) about Form 1099-K reporting, go to
Standards and mechanisms for settling the and enter “new payment card reporting” in the
search box.
Guarantee of payment to the persons providing goods
or services (participating payees) in settlement of
Specific Instructions
transactions with purchasers pursuant to the agreement
or arrangement.
A PSE must file Form 1099-K, Payment Card and Third
A third party payment network does not include any
Party Network Transactions, for payments made in
agreement or arrangement that provides for the issuance
settlement of reportable payment transactions for each
of payment cards.
calendar year. A PSE makes a payment in settlement of a
Mar 14, 2018
Cat. No. 54721E

Download Instructions for IRS Form 1099-k - Payment Card and Third Party Network Transactions 2018

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