Eventbrite 1099-K Service Fees & Processing

[NumbersHurtMyHead]

My company received a 1099-K from Eventbrite. The amount in Box 1a includes "Gross amount of payment card/third party network transactions." (i.e., the amount we processed through them when selling tickets to our events). This amount is gross and includes their Service Fees, Payment Processing Fees, and tickets we refunded.

When filing our Form 1065 to the IRS (we're a multi-member LLC), I'm guessing we should report the full amount shown in 1099-K Box 1a as the figure in Form 1065 Box 1a "Gross Receipts or Sales", deduct our returns in Form 1065 Box 1b "Returns and allowances", and finally deduct Eventbrite's Service and Payment Processing fees as "Other Deductions" on Line 20, detailing them in the separate statement we must provide for those.

.......is that right?

[DawnC · Accepted solution]

Yes!  Income, less returns, goes on Line 1c, and the fees are deductions.