Wondering why you received a 1099-K? No need to worry - we've got you covered!
So I'm a Sub-Merchant using AndDone, why did I receive a 1099-K in the mail?
First of all, there's no need to need to panic! As a Sub-Merchant with AndDone, if you receive payments exceeding $600 USD using the AndDone platform, you will receive a 1099-K. AndDone, LLC is a company that processes electronic payments and Adyen is the Merchant-Acquirer for AndDone, LLC. As a result, on your 1099-K you will notice that Adyen is the filer. As the Merchant-Acquirer, Adyen is required to report the income from payment card transactions and third-party network transfers that have been processed on any AndDone Sub-Merchants' behalf using Form 1099-K, in accordance with Internal Revenue Code section 6050W.
Receiving a 1099-K does not necessarily mean that taxes are owed on the reported income. The 1099-K is essentially a reporting mechanism for the IRS to track electronic transactions and ensure compliance with tax laws. However, it is important to review the information on the form and reconcile it with your own records to ensure accuracy.
If you receive a 1099-K form, it is important to include this reported income on your tax return. Failure to do so can trigger an audit or penalties from the IRS. We recommend consulting with a trusted tax professional if you have any questions about reporting income from a 1099-K. For more information, please reference IRS Publication 334.
1099-K Basics
The 1099-K form is an important tax document that is used to report income received through electronic payment methods. The purpose of the 1099-K form is to provide the Internal Revenue Service (IRS) with information about transactions processed through electronic payment methods, like online payment platforms and third-party payment processors.The form includes details like the taxpayer's name, address, and tax identification number, as well as the total amount of electronic transactions processed during the year. It also breaks down the transactions into different categories, such as card-present transactions and card-not-present transactions.
Receiving a 1099-K does not necessarily mean that taxes are owed on this reported income. However, it is important to review the information on the form and reconcile it with your own records to ensure accuracy.
Once again, if you receive a 1099-K form, it is important to include the reported income on your tax return. Failure to do so can trigger an audit or penalties from the IRS. AndDone, LLC recommends consulting with a tax professional if you have any questions about reporting income from a 1099-K. For more information, please reference IRS Publication 334.
If you need assistance or have any further questions, please contact our support team.