1099-K

[erinmcgrane]

Hello,

I received a 1099-K form in my email from Dwolla and I have never gotten one before. Here is the text of the email:

"Each year, Dwolla submits a Form 1099-K to the IRS for any user whose payment volume exceeds the federal threshold. As a customer of DepositLink, your transfers on that platform are performed through your Dwolla account, and are reported by Dwolla in your 1099-K.

Dwolla has determined that your payment receipts with DepositLink must be reported in a Form 1099-K this year. Please fill out the provided Form W-9 so that we can provide the correct identifying information on your Form 1099-K. You are required by law to provide this information. If we do not receive the Form W-9 within 30 days of this notice, Dwolla will be required to suspend your account and you will not be able to initiate transfers with DepositLink.

Note: Dwolla is collecting your Form W-9 through the link provided in this email. Please do not email us a PDF copy of your Form W-9."

Can someone explain why I am getting this email and what it means? 

Thank you!

[Anonymous]

Hi

Third-party payment networks are required to file Form 1099-K with the IRS and provide a copy to you when the gross payment amount is greater than $600.Form 1099-K should not report gifts or reimbursement of personal expenses you received from friends and family.

Go ahead and provide them a 2023 W-9. Here is the link to the 2023 W-9:

chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://www.irs.gov/pub/irs-pdf/fw9.pdf

Here is an article about the 1099-K:

https://www.irs.gov/businesses/understanding-your-form-1099-k

Thank you,

John

CPA

[fiona112]

Hello @erinmcgrane,

The reporting requirements have recently changed. Payment apps and online marketplaces are required to file a Form 1099-K if the gross payments to you for goods and services are over $600.  If you received the 1099-K from your business transactions you would include the 1099-K as income.  If the 1099-K was generated gifts or reimbursements from family or friends you should contact the Issuer of the 1099-K to correct it.

What is Form 1099-K?

Did You Get a Form 1099-K and Aren’t Self-Employed or a Small Business?

What Online Business Owners Should Know about IRS Form 1099-K

 IRS:   Understanding Your Form 1099-K