IN BRIEF
Form 1099-K is an IRS tax document used to report certain payment transactions processed through payment settlement entities. iClassPro customers in the United States who use iClassPro Payment Services may receive this form annually, depending on their transaction volume and reporting thresholds.
Overview
Form 1099-K, officially titled Payment Card and Third Party Network Transactions, is used by the Internal Revenue Service (IRS) to track certain types of electronic payments. If a business uses a service to process credit card, debit card, or other third-party network transactions, that service is considered a payment settlement entity and is responsible for reporting qualifying transactions on Form 1099-K.
For iClassPro customers using iClassPro Payment Services, the form is generated and sent on behalf of iClassPro and reflects eligible payment activity for the applicable tax year.
Important Note: This document applies only to customers located in the United States who are using iClassPro Payment Services.
Accessing the Information
Form 1099-K is not generated or accessed directly within the iClassPro System.
- The form is sent directly to the merchant by the payment processor.
- Delivery typically occurs by mail or electronically, depending on the delivery method on file.
Step-by-Step Instructions
When You Will Receive Form 1099-K
You should receive Form 1099-K by January 31 if, during the prior calendar year, you received payments:
- From payment card transactions, such as:
- Credit cards
- Debit cards
- Stored-value cards
- And/or from third-party payment network transactions that meet both of the following thresholds:
- Gross payments exceeding $600
- Any number of transactions
How Reported Sales Are Calculated
The amounts shown on Form 1099-K reflect gross sales volume only for the tax year.
This means:
- Only sales amounts are included.
- The following are not included:
- Refunds
- Adjustments
- Reversals
Because of this, the totals shown on Form 1099-K may not match the totals on your month-end statements.
- Month-end statements show net amounts:
- Sales minus refunds, adjustments, and reversals
- Form 1099-K shows gross amounts:
- Sales only, with no deductions
When Form 1099-K Is Due to the IRS
Payment settlement entities must submit Form 1099-K information to the IRS by:
- The last day of February of the year following the reported transactions
- The first day of April of the year following the transactions if filing electronically
Troubleshooting & FAQs
-
Why does my Form 1099-K total not match my iClassPro month-end statements?
- Form 1099-K reports gross sales only and does not subtract refunds, adjustments, or reversals. Month-end statements reflect net amounts, which is why the totals may differ.
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Does Form 1099-K include cash or check payments?
- No. Form 1099-K only includes transactions processed through payment cards or qualifying third-party payment networks.
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Who should I contact if I have questions about my Form 1099-K?
- Contact the iClassPro Payments team at Payments@iClassPro.com for assistance.
Relevant Links
For more information and instructions on filling out your 1099-K visit: