Who must file Form 1099-K?

According to the IRS, Payment Settlement Entities (PSEs) and Electronic Payment Facilitators (EPFs) must file Form 1099-K if the taxpayers recorded more than $5,000 in business transactions for the tax year 2024. This form must be filed annually with the IRS and distributed to the recipient of the payment.

Payment Settlement Entity (PSE): Any bank or other organization with authority to complete transactions made using a credit card. This also includes third-party settlement organizations.

Electronic Payment Facilitator (EPF): An entity that the PSE has assigned on a contract basis to facilitate these transactions. If any EPF makes a payment settlement transaction of $5,000 or more, they must file Form 1099-K and distribute a copy to the payee.