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.
|State||DC, MA, MD,
MS, VA, VT
How it works
To present the tax form, follow this general flow:
- In your platform, show a button or a link for getting the tax form.
- When a sub-merchant clicks the button, send a /getTaxForm request. The response returns a Base64 binary.
- Convert the received Base64 binary to PDF format.
- Provide the sub-merchant with a PDF copy of their tax form.
Get a tax form
Use the /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 /getTaxForm request, specifying:
||String||Your unique reference to the sub-merchant's account holder.|
||String||Type of the requested tax form. For example, 1099-K.|
||Integer||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.
The response contains:
||String||The content type of the tax form. For example,
||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.