What is a 1099-K?
As per the IRS, all merchants must report monthly and annual gross sales by payment cards to the IRS via a 1099-K form along with their regular tax filing information.
The 1099-K form is pre-populated with the monthly and annual gross sales volume related to payment cards and is sent to the merchant on behalf of Nuvei Technologies Inc.
A copy is simultaneously sent to both the IRS and the merchant.
If you processed credit and debit card payments with Intuit in the current tax filing year, the Internal Revenue Service (under IRS regulation 6050W) may require Intuit to provide a 1099-K for your account.
Find out more about why Nuvei is providing you this form by clicking here.
Important things to know about your 1099-K:
Delivery of 1099-Ks will begin in mid-January and all required 1099-Ks will be mailed by January 31st.
Nuvei issues one 1099-K per merchant account number. All merchants that have processed credit card transactions in the tax year being reported will receive a 1099-K*.
Transactions are reported on a 1099-K are GROSS sales and do not include credits, refunds and reversals. If necessary, your accountant can help determine how to reconcile those transactions for tax purposes.
The final filling date for all 1099-K forms is April 15th of the current year however changes can only be made up to March 31st prior to that. Changes to account information can only be made to the current tax year (the year prior to the current year) and future tax year’s 1099 -K unless we are specifically instructed otherwise by the IRS.
Electronic check processing transactions are not reported on the 1099-K.
If the combination of the Tax ID number (either your Employer Identification Number EIN or Social Security Number SSN) and the business legal name information on the 1099-K form do not match what the IRS has on file, a merchant is said to be in a “non-matching” status which can lead to possible fines and / or withholding of funds by the IRS.
*Certain specific merchant account types (e.g. not-for profit) may not receive a 1099-K as well as merchants that had less than 200 transactions and $20,000 in gross sales
What do I need to do with the 1099-K form?
Merchants should submit their 1099-K form along with all other documentation for their business tax filings for 2015 to the IRS.
Who is the “Filer”?
The “Filer” is the payment processor i.e. TSYS / First Data. The “Filer’s” name and address information will be listed in the top left section of the 1099-K form. The “Filer’s” Federal Tax ID will also be listed on the 1099-K form.
Who is the “Payee”?
The “Payee” is any person that accepts a payment card as payment, or any person who accepts payment made by a third party settlement organization on behalf of the purchaser or customer.
The “Payee’s” name and address information will be listed in the middle left section of the 1099-K form. The “Payee’s” Federal Tax ID (EIN or SSN) will be listed on the 1099-K form, right underneath the “Filer’s” Tax ID.
Who is the “PSE”?
The “PSE” is Payment Settlement Entity which is Nuvei. The “PSE’s” name and telephone will be listed in the bottom left section of the 1099-K form.
I did not receive my 1099-K or need another copy, how do I obtain another?
Merchants will have their 1099-K forms sent out during the third week or during the last week of January. A copy will also be sent to the IRS.
If the merchant has not received their 1099-K form by February 20th, send an e-mail to 1099IRSTax@nuvei.com.
Some merchants will receive two separate 1099-K forms, due to a change in processor or payment service provider. There may be a delay between receiving both forms in the mail.
How are the reported sales on the 1099-K form calculated?
The 1099-K form will list the gross dollar amount of payment card transactions for the 2016 tax year.
Gross dollar amount means that the dollar amounts listed on the 1099-K form are sales only. Refunds and adjustments and reversals are not counted / included.
This also means that the dollar volume totals listed on your month end paper statements may not match what is listed on the 1099-K form; the merchant’s month end statement shows net dollar amounts, which means sales volume minus refunds and adjustments and reversals.
NOTE: American Express accounts that are serviced directly from American Express are not included in the totals provided by Intuit and are reported by American Express.
Where do I find the credits, refunds or reversals I processed?
You can visit the Merchant Dashboard to view a detailed transaction report for different transaction types including refunds. merchant.nuvei.com
I changed my Business from a corporation to a Sole proprietorship. Will I receive multiple 1099-K’s?
No. Only one 1099-K will be issued per merchant account that reflects information that was on file as of the end of the previous year.
When will the 1099-K form be filed with the IRS?
The 1099-K will be filed with the IRS on or before April 15, however changes will only be accepted through March 31. This will provide you the opportunity to make any corrections prior to Intuit’s final submission to the IRS.
Can 1099-K forms be filed electronically?
Yes. Those required to file may do so through the FIRE (Filing Information Returns Electronically) system. If a payment settlement entity has more than 250 individual information returns to file in any calendar year, they all must be submitted electronically. Existing users may log into FIRE. New users may create an account and test their file before submitting.
My 1099-K form was damaged or lost. Can I get another copy?
To obtain another copy of the 1099-K form, send an e-mail to 1099IRSTax@nuvei.com.
What if the account information on the 1099-K is not what I want to be reported to the IRS?
Your 2016 1099-K was prepared based on the most recent account information we have on file as of the end of last year.
If you need to change your Business Name or Tax information, send a completed W-9 form via e-mail to 1099IRSTax@nuvei.com prior to the March 31 cut-off date.