Tax compliance for payment processing accounts and Form 1099-K

Intuit QuickBooks Payments is required by the IRS and certain U.S. states to report payment card and third-party network transactions. This reporting is done using Form 1099-K, an informational document provided to you, the IRS, and applicable state agencies. The form summarizes the sales activity of your account to assist with tax reporting.

Eligibility for Form 1099-K

Intuit QuickBooks Payments will provide a Form 1099-K for each payment account that meets specific criteria during the previous calendar year.

Federal requirements:

• The account is U.S.-based.
• The gross total of payment card transactions exceeds $20,000 and 200 transactions for the tax year 2025.

Note: Prior to tax year 2025, the IRS 1099-K threshold applied to QuickBooks Payments accounts based in the U.S. having $5,000 in total gross volume.

State requirements:

• The account meets specific state filing thresholds, which may differ from IRS requirements.

State filing thresholds

The following table outlines the filing thresholds for various states.

Download your Form 1099-K

You can access your Form 1099-K from the Merchant Service Center by January 31st.

1. Sign in to the Merchant Service Center.
2. From the Activity & Reports ▼ dropdown, select Download Form 1099-K.
3. Select Download.

Penalties for non-compliance

The IRS uses Form 1099-K data to verify that taxpayers accurately report their income. Failure to comply with reporting requirements can result in penalties and fines for both payment providers and taxpayers.

The IRS may penalize you if you:

• Fail to file in a timely manner.
• Fail to include all required information.
• Fail to report a TIN.
• Fail to file machine-readable paper forms when required.
• Fail to report income shown on Form 1099-K (underreporting penalties can be up to 20% of the underreported amount plus interest).
• File on paper when electronic filing is required.
• Include incorrect information.
• Report an incorrect Taxpayer Identification Number (TIN).

Penalty amounts:

• Filed correctly within 30 days: $60 per return (Max $683,000/year; $239,000 for small businesses).
• Filed more than 30 days late but before August 1: $130 per return (Max $2,049,000/year; $683,000 for small businesses).
• Filed after August 1 or not at all: $340 per return (Max $4,098,500/year; $1,366,000 for small businesses).

Note: You are considered a small business if your average annual gross receipts for the three most recent tax years is $5 million or less.

Verify your business information

To ensure compliance, verify your Legal Business Name and TIN.

• Check IRS records: Look at your SS4 EIN Assignment Letter or your last business tax return. You can also call the IRS at (800) 829-4933 to request letter 147c.
• Update QuickBooks info: Sign in to the Merchant Service Center to verify or update your taxpayer information.

For more information on how these regulations may affect your business, visit the IRS website or consult your tax or legal advisor.