By law, Zelle is not required to send out 1099s.
from the Zelle website:
"Does Zelle® report how much money I receive to the IRS?
Zelle® does not report transactions made on the Zelle® network to the IRS. The law requiring certain payment networks to provide forms 1099K for information reporting does not apply to the Zelle® network."
The law requires 3rd party payment providers to send out 1099s under certain circumstances.
Zelle is NOT a 3rd party payment provider! That is the twist.
The Federal Reserve is the First Party Payment provider. Banks are the 2nd party payment providers. Paypal, etc are third party payment providers. Zelle payments are issued by Banks, so it is a product of 2nd party payment providers and therefore is not required to send out 1099s since the law only requires 3rd party payment providers.
You will not receive a 1099 from Zelle (or the bank that send out the Zelle payment to you)
