E-file Form 1099-K Online to Report Payment Card and Third-Party Network Transactions

A payment settlement entity (PSE) must generally file Form 1099-K for reportable payment transactions settled for participating payees. This includes payment card transactions and third-party network transactions.

For third-party network transactions, a third-party settlement organization (TPSO) generally must report payments when the gross amount exceeds $20,000 and the number of transactions exceeds 200 during the calendar year. Payment card transactions are not subject to this de minimis threshold.

This can include:

• Payment card processors and merchant acquiring entities
• Payment apps and online marketplaces
• Craft and e-commerce marketplaces
• Auction and resale platforms
• Car-sharing and ride-hailing platforms
• Ticket resale platforms
• Crowdfunding platforms
• Freelance and service marketplaces

For 2026 payments, the federal reporting threshold for third-party network transactions remains more than $20,000 and more than 200 transactions. The 2026 Form 1099-K also introduces new boxes for reporting cash tips and Treasury Tipped Occupation Codes (TTOCs).

• 2026 payments: The $20,000 and 200-transaction threshold applies to third-party network transactions
• Box 1c: Reports cash tips included in the gross amount reported in Box 1a
• Box 1d: Reports applicable Treasury Tipped Occupation Code(s) for the tips reported in Box 1c

Click here to learn more about the 2026 Form 1099 changes.

Collecting accurate payee tax information before filing Form 1099-K helps ensure the recipient's name, TIN, and other required details match IRS records. This can reduce filing errors, prevent incorrect information returns, and help avoid IRS notices or backup withholding issues.

Recipient copies are due by February 1, 2027. The IRS filing deadline is March 1, 2027 for paper returns and March 31, 2027 for electronic returns. If any of these dates fall on a weekend or holiday, the deadline moves to the next business day.

Learn more about 1099-K deadlines

Yes. The federal reporting requirements vary based on the type of payment transaction:

• Third-party network transactions: A TPSO generally does not have to report a payee when the gross amount does not exceed $20,000 and the number of transactions does not exceed 200 during the calendar year.
• Personal payments: Payments between friends or family that are not for goods or services generally are not reported on Form 1099-K.
• Payment card transactions: The $20,000 and 200-transaction de minimis threshold does not apply to payment card transactions.

A PSE may still issue Form 1099-K in situations where a federal de minimis exception applies.

The IRS may charge $60 to $340 per return for late or incorrect Form 1099-K filings. Intentional disregard can result in a penalty of $680, with no annual maximum.

The other tiers are capped annually — for returns due in 2027, $244,500 to $1,397,000 for small businesses (average annual gross receipts of $5 million or less) and $698,500 to $4,191,500 for larger filers. Amounts are indexed for inflation each year.

If you don't file a Form 1099-K electronically with the IRS on time, you may be subject to Form 1099-K penalties.

The key distinction is how the payment was made. If it moved through a platform or payment network, it's 1099-K territory. If it was paid directly by a business to a contractor or vendor, it's 1099-NEC or 1099-MISC.