1099-K Forms

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1099-K Forms.

The IRS requires all payment processors to annually report the total credit card sales from each merchant, and further, that these 1099-K forms be posted by the end of January. So please be on the lookout for them in the mail. Also labeled as “Payment and Third-Party Network Transactions,” the form typically breaks down sales by month and instead of displaying our name (Dharma Merchant Services), the actual network processor name of our back-end processing partner is listed as the filer/sender. For example, it could display as First Data Reporting Services, Priority Payment Systems, Pivotal Payments, etc. The card sales are reported to the IRS, so you will need this to file business tax returns. More importantly, though, please confirm that the reported TIN (tax identification number) is correct! Finally, if you change your legal name or status, you are required to submit a completely new application and accordingly, a second 1099K form would be sent at year’s end.