Who must file Form 1099-K?
404 views |
Last modified 6/23/2020 9:52:53 AM EST
According to the IRS, the Payment Settlement Entity or an Electronic payment facilitator must file Form 1099-K if they have processed the payment of $20000 minimum or more than 200 payment transactions for the payee in the last year. They have to send this Form copy to the payee by 31 January. Every PSE or EPF should report the Form 1099-K for every calendar year.
Payment Settlement Entity (PSE) - Any bank or other organization with the authority to complete the transaction made through the payment card. It also includes a third party settlement organization.
Electronic Payment Facilitator - It is the entity that has been assigned by the PSE on the contract basis to take care of the transaction on behalf of them. If any EPF has made such payment settlement transactions, they have to file Form 1099 K and send a copy to the payee.