Providing tax forms

In the US, payment settlement entities, like Adyen, are required 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.
• That has crossed the processed volume threshold set by US tax authorities.

Some states require filing of 1099-K forms as well.

For 2023, Adyen is required to file 1099-K forms for all merchants and sub-merchants with a gross processed volume at or above the federal threshold of USD 20,000 per calendar year with a minimum of 200 transactions. At state level thresholds can vary depending on the state.

Adyen follows the IRS requirements for reporting gross processed volume prior to deduction of fees, chargebacks and refunds.

Retrieve digital tax forms

Follow this general flow to provide your sub-merchant with a digital copy of their tax form.

1. In your platform, show a button or a link for getting the tax form.
2. Send an API request to get a tax form. The response returns a Base64 binary.
3. Convert the received Base64 binary to PDF format and provide the sub-merchant with a PDF copy of their tax form.

Step 1. Present tax forms in your UI

In your UI, show a button or link that your sub-merchants can use to get the tax form. When a sub-merchant clicks the link or button, this should trigger the API request in the next step.

Step 2. Get a tax form

Use the /getTaxForm endpoint to generate a Base64 binary format of the sub-merchant's tax form.

From your server, make a POST /getTaxForm request, specifying:

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

The response contains:

Step 3. Decode Base64 binary and convert to PDF

To present the tax form to the sub-merchant, use the Base64.Decoder class. Provide the sub-merchant with a PDF copy of their tax form.