Register consent for paperless delivery of tax forms (US only)

In the United States (US), Adyen is required to file a 1099-K tax form with the Internal Revenue Service (IRS) for any US-based user to which Adyen pays out directly. This filing process also includes printing and mailing the tax form to each legal entity associated with the users in your balance platform. The form is mailed to the address registered with Adyen for each legal entity.

If you want to save on the cost of having tax forms printed and mailed to your users through Adyen, you must gather your users' express consent to receive the forms in electronic format only, and register that consent with Adyen. Adyen provides a set of endpoints to allow your users to register their consent to receive their 1099-K tax form through electronic delivery only.

Requirements

Meeting Adyen (and IRS) electronic delivery requirements

When implementing this feature, consider the following:

• IRS requirements - The IRS publishes a set of specific requirements for providing tax information returns electronically (IRS Publication 1179 - Section 4.6). You must comply with these requirements when offering electronic delivery only of tax form 1099-K to your users.

• Client presentation of electronic delivery preferences - As part of your implementation of this feature, you must present a way in your client interface for your marketplace's users to view and set their preference for electronic delivery of tax form 1099-K.
  For example, you can show a toggle switch, a checkbox, or some other UI element, and bind their consent preference (true or false) to that UI element.
  Your electronic delivery preferences selection page must present information about a user's rights according to rules the IRS has for providing tax information returns electronically, and for providing continuous access to those returns.

• Electronic delivery of tax forms is your marketplace's responsibility - In addition to the collection and registration of user consent for electronic delivery with Adyen, your marketplace is responsible for providing electronic delivery of, and continued access to, their 1099-K tax form(s).

• Deadline for registering electronic delivery consent - To make sure Adyen does not charge your marketplace to print and mail forms to your users, their consent for electronic delivery of tax forms must be registered with Adyen by 11:59 pm Eastern Time, on December 31 in the year for which the user wants their tax forms electronically delivered.

How it works

To check and register a user's consent for electronic delivery for 1009-K tax forms:

1. Implement a way in your client interface for your marketplace's users to view and set their consent preference for receiving their tax information forms electronically.
   For example, you can show a toggle switch, a checkbox, or some other UI element, and bind their consent preference (true or false) to that UI element.
2. Before you initialize and load your preferences page, make an API call to check your user's existing electronic delivery consent setting with Adyen.
3. Present your user's consent setting on your preferences page.
4. When your user decides to allow (or revoke) their consent for electronic delivery only, make an API call to register that consent preference with Adyen.
5. In addition to the collection and registration of user-consent for electronic delivery only with Adyen, your marketplace is responsible for providing electronic delivery of, and access to, 1099-K tax form(s) for those users when they become available.

Check a user's electronic delivery consent preference

You can only check a user's paperless delivery consent preference using the API. This feature is not available through the Customer Area.

You may want to check consent preferences for your users for many reasons. For example, you could audit the amount of users that have not opted for paperless delivery to determine the cost associated with mailing forms. You could also check so that you can urge your users to select paperless delivery before the deadline to register their consent preference.

To check a user's consent preference:

1. Find the unique legal entity ID of the account holder whose consent status you want to check.

2. Make a POST /legalEntities/{id}/checkTaxElectronicDeliveryConsent request, specifying the account holder's legal entity ID as a path parameter:

   Path parameter	Required	Description
   id		The unique identifier of the legal entity. For s sole proprietorship, this is the individual legal entity ID of the owner. For an organization, this is the ID of the organization.

3. The response contains the legal entity's 1099-K electronic delivery consent preference registered with Adyen. If the value for US1099k is true, your platform is responsible for providing electronic delivery of, and access to, 1099-K tax form(s) when they become available.

   Response parameter	Type	Description
   US1099k	boolean	The electronic delivery consent setting for the legal entity. The default value is false. If set to true, your marketplace is responsible for providing electronic delivery and access to their 1099-K tax form(s).

Register a user's electronic delivery consent preference

You can only register a user's electronic delivery preference using the API. This feature is not available through the Customer Area.

1. Find the unique legal entity ID of the account holder whose consent status you want to check.

2. Before presenting your electronic delivery preferences page, check your user's existing electronic delivery consent setting.
   Make a POST /legalEntities/{id}/checkTaxElectronicDeliveryConsent request, specifying the account holder's legal entity ID as a path parameter:

   Path parameter	Required	Description
   id		The unique identifier of the legal entity. For sole proprietorship, this is the individual legal entity ID of the owner. For organizations, this is the ID of the organization.

3. Based on the boolean value of the US1099k parameter in the response, present your user's electronic delivery consent setting.

   Request parameter	Type	Description
   US1099k	boolean	Consent to electronically deliver US 1099-K tax form. By default, the value is false. Set to true to register consent for electronic delivery. If set to true, your marketplace is responsible for providing electronic delivery and access to their 1099-K tax form(s).

4. If the user selects paperless delivery for their 1099-K tax form, make a POST /legalEntities/{id}/setTaxElectronicDeliveryConsent request, specifying the legal entity ID of the user as a path parameter, and US1099k as a request parameter with the value set to true.

   Path parameter	Required	Description
   id		The unique identifier of the legal entity. For sole proprietorships, this is the individual legal entity ID of the owner. For organizations, this is the ID of the organization.

   Request parameter	Required	Type	Description
   US1099k		boolean	Consent to electronically deliver US 1099-K tax form. By default, the value is false. Set to true to register consent for electronic delivery. If set to true, your marketplace is responsible for providing electronic delivery and access to their 1099-K tax form(s).

5. A successful response returns a 200 - No Content HTTP status code. Present your user's electronic delivery consent setting on your preference page.

See also

• Provide tax forms (US only)
• IRS Publication 1179 - General Rules and Specifications for Substitute Forms 1096, 1098, 1099, 5498, and Certain Other Information Returns (see section 4.6).