1099-K Form

The IRS requires payment processors to file 1099-K reports for all merchants that exceed the IRS minimums set for that calendar year. For 2025, the minimum is $20,000 and 200 payments. Additionally, some states also require a local filing depending on various local limits. There is no action required by the platform or merchants regarding the filing of 1099-Ks. The 1099-K forms will be delivered to merchants at the end of January.

The 1099-K includes the gross amount of payments collected via card and ACH (i.e. all sales prior to netting out refunds and other adjustments) for the year along with the total number of transactions. 1099-K forms will have platform contact information in the Filer’s Name section at the top left, and Rainforest’s contact information along the left in the PSE field. The account number is the Rainforest MID assigned to the merchant at onboarding.

Merchants are likely familiar with this form but some may have questions about why they have received a 1099-K. To assist with questions, platforms can reference the IRS directly or review the commonly asked questions section below.

Commonly asked questions

Why does Rainforest file a 1099-K with the IRS?

We are required to report to the IRS all credit card and ACH transactions processed in the prior tax year. The amount reported to the IRS is for gross credit card sales, not including any adjustments or credits, fees, refunds, or any other amounts. Transaction amounts must be reported to the IRS by the date of the transaction in a calendar month, not by the date settled or paid out.

For more information on IRS requirements, please refer to the IRS site.

What is the purpose of the 1099-K form?

The IRS 1099-K form was introduced to ensure that all merchants are correctly reporting sales for tax purposes. It requires merchant acquirers to report the payment transactions they process on behalf of the merchants.

Do these regulations apply to nonprofit organizations?

Yes, these regulations apply to both nonprofit and for-profit organizations and entities.

When should merchants receive their 1099-K?

Emails inviting merchants to access their electronic 1099-K copy will be sent at the beginning of January to the owner’s email listed on the merchant application. If a merchant doesn’t access their electronic copy, they will be mailed a paper copy to the address listed in their merchant application by January 31st.

Do merchants have to report the amounts from the 1099-K on their tax return?

Please consult a tax professional or the IRS for additional information on how the amounts reported on the 1099-K should be reflected in their tax returns.

My merchant did not receive their 1099-K or need another copy; how do we obtain another?

If your merchant hasn’t received their 1099-K by February 10th, please contact [email protected] for assistance.

Why did my merchant receive 1099-K from multiple providers?

If the merchant changed service providers in the previous year or used multiple processors during the year, they will receive a 1099-K from each of them.

My merchant’s 1099-K was returned to sender, what do I need to do?

If a 1099-K is returned to the sender, it will go to the platform’s address on file. Contact the merchant for an updated address so a delivery can be reattempted. If you are unable to deliver the copy, please shred the documentation.