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Providing tax forms

Learn how to provide a 1099-K tax form.

Head to the IRS website to learn more about the 1099-K tax form.

In the US, payment settlement entities, like Adyen, are obligated to file a 1099-K tax form with the Internal Revenue Service (IRS) for any US-based entity (merchant or sub-merchant) to which they pay out directly.

Who is eligible

US-based merchants or sub-merchants that have processed over a certain threshold are eligible for the 1099-K tax form. At the federal level, merchants or sub-merchants that have processed more than $20,000 and have had more than 200 transactions are eligible. State thresholds can vary depending on the state.

Type State Transactions Count Volume Year
Federal Federal 200 $20,000 2020
State DC, MA, MD,
MS, VA, VT
0 $600 2020
State NJ 0 $1,000 2020
State IL 4 $1,000 2020
State AR 0 $2,500 2020

How it works

To present the tax form, follow this general flow:

  1. In your platform, show a button or a link for getting the tax form.
  2. When a sub-merchant clicks the button, send a GET /getTaxForm request. The response returns a Base64 binary.
  3. Convert the received Base64 binary to PDF format.
  4. Provide the sub-merchant with a PDF copy of their tax form.

Get a tax form

Use the GET /getTaxForm endpoint to generate a digital copy of the sub-merchant's tax form. The sub-merchant can then save or print this tax form.

To receive a Base64 binary, from your server, make a POST GET /getTaxForm request, specifying:

Field Type Required Description
accountHolderCode String -white_check_mark- Your unique reference to the sub-merchant's account holder.
formType String -white_check_mark- Type of the requested tax form. For example, 1099-K.
year Integer -white_check_mark- The applicable tax year in the YYYY format.

As noted previously, a tax form is only generated for sub-merchants that hit a certain volume or transaction threshold. If you make an API request for an accountHolderCode that does not hit the threshold, you will receive an error response.

Request (POST /getTaxForm):

 

{
   "accountHolderCode":"26e8447d-d779-4be4-8ea8-6a1f8510479r",
   "formType":"1099-K",
   "year":2019
}

The response contains:

Field Type Description
contentType String The content type of the tax form. For example, application/pdf.
content String The content of the tax form in the Base64 binary format.

Decode Base64 binary and convert to PDF

To present the tax form to the sub-merchant, use the Base64.Decoder class.