ACH Business Income Reporting

[Bryan Burke]

I own a business that accepts monthly payments from credit cards and ACH transactions. All of the payments are processed by a third-party payment processor. The 1099-K that they sent only includes the credit card transactions and not the ACH transactions. Do they report those to the IRS and not send any paperwork to me? Also, if that is the case, how so I report them on my taxes?  

Scenario. I have 40 people that pay 100 a month each via ACH, individually they pay $1200 a year but collectively that total is $48000.    

[ColeenD3]

You must report all your income, whether or not you get a reporting form. Double-check your records to make sure this is accurate and you are not double-counting income.

Speak to the merchant and ask why you did not get a 1099-K for this income.

You can report it as non 1099-NEC income, with the notation of ACH transactions. If you are using the Self-Employed version, the second option in this screenshot is cash.

[Bryan Burke]

Thanks! I did receive a 1099-K but it only includes the credit card transactions not the ACH transactions. Is there a separate 1099-K or equivalent form for ACH transactions? 

[JamesG1]

The form indicates what it is reporting.  See the box Check to indicate transactions reported are on IRS Form 1099-K.

IRS Form 1099-K Instructions differentiates between:

• payment card transactions (checking the first or top box) and
• third party network transactions (checking the second or bottom box).

Page 4 states:

Transactions Reported Checkboxes

Check the first (top) box if you are reporting payment card transactions on this form. Check the second (bottom) box if you are reporting third party network transactions on this form. If you are reporting payments to the same payee that include both payment card and third party network transactions, you must file a separate Form 1099-K reporting the gross amount from each type.