I Got 1099 Problems, But Zego Ain’t One
Hit us with those 1099-K questions!
Well, here we go again. Tax season is like a leaky roof that you stick a bucket under for a while until a torrential downpour hits. All of a sudden you have to drop your to-do list and deal with taxes, like, right now! What a pain. You’re busy, you’re tired, and you’ve got stuff to do. Taxes are tough unless you have a passion for write-offs, loopholes, and tax codes. For the rest of us though, we need a little help, and that’s what Zego is here for!
Let’s go over the basics of those pesky 1099-Ks.
What is a 1099-K?
The 1099-K “Payment Card and Third Party Network Transactions” document is an IRS tax form that reports the gross amount of funds that were processed through a Third Party Payment Processor (TTP) like Zego.
Who Receives A 1099-K Form?
This form is issued to any company who exceeded the Federal qualifying threshold of $600 through a TTP like Zego. This volume threshold is based on the unadjusted gross sales (per IRS regulations) of every transaction processed by any of the following: credit cards, ACH/eChecks, CashPay, Check21, PayPal, etc. And by ‘unadjusted,’ we mean the total gross sales, prior to any adjustments for discounts, returns or refunds.
Does the Form 1099-K Apply to Non-Profit Organizations?
Yes! Even nonprofits must answer to Uncle Sam.
What Should I Do with the Information on Form 1099-K?
Your 1099-K form is only an informational document. Use this in conjunction with your other tax records for your tax return. Be sure to retain this form in the event your company is ever audited.
When Should I Expect To Receive Form 1099-K?
Zego typically sends them to you in January. If you don’t receive it, please verify your mailing address with Zego. You can do this by contacting your Client Account Representative, or by sending an updated mailing address to 1099K@gozego.com, and asking for a copy of the 1099-K form.
Will I Receive More Than One 1099-K Form?
You will receive one 1099-K for each entity that is set up within the Zego system.
We wish you a stress-free tax season. If you have any questions, give us a call at (866) 729-5327. We are here to help!