Form 1099-K
IRS information return for payment-card and third-party-network transactions.
Definition
Form 1099-K is filed by payment settlement entities (Stripe, PayPal, Amazon) reporting gross transactions to payee. Threshold lowered to $5,000 in 2024-2025; was $20,000 plus 200 transactions previously.
Context
Stripe, PayPal, Amazon Seller, and other payment processors issue 1099-K to US-LLC recipients. Non-resident-owned LLCs treated as US payees for 1099-K purposes.
Example
A Delaware LLC Stripe account processes $50,000 in transactions during the year. Stripe issues 1099-K reporting the gross amount.
Common pitfalls
- 1099-K reports gross, not net; doesn't account for refunds or fees.
- Reconcile 1099-K to your records for accurate income reporting.