IRS 1099-K Frequently Asked Questions (FAQs)

Why does Maast File a 1099-K with the IRS?

Maast is required to report to the IRS all of your credit card transactions processed with us in the prior tax year. The amount reported to the IRS is for gross credit card sales, not including adjustments or credits, cash equivalents, discount amounts, fees, refunds, or other amounts. Transaction amounts have to be reported to the IRS by the date of the transaction in a calendar month, not by the date settled or paid to you. 

Please refer to the IRS site for more information on IRS reporting requirements.

What is the purpose of the 1099-K form (Payment Card and Third-Party Network Transactions)?

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

A 1099-K form reports payment card and third-party network transactions to the IRS. It reports income received from electronic or online payments, such as credit cards, debit cards, Apple Pay, Samsung Pay, Android Pay, and PayPal. Any non-ACH Payment transactions processed with us are considered payment card transactions.

Do these regulations apply to non-profit organizations?

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

When should I receive my 1099-K form?

1099-K forms for the previous year’s transactions must be postmarked by January 31st. Some may be received on or before that date, depending on when your 1099-K form was mailed. Suppose you have elected to receive your 1099-K form electronically. In that case, you may log into Merchant Manager, select Reports, and view or print your 1099-K form on January 31st.

Do I have to report the amounts from the 1099-K form on my tax return?

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

What should I do if I receive a 1099-K form for amounts that do not belong to my business?

Please contact us to discuss.

How do I determine my Gross Payment Card/Third Party Network Transactions (box 1a)?

The amount in box 1a is the gross amount of the calendar year's total reportable payment card/third-party network transactions. Gross amount means the total dollar amount of total reportable credit card transactions for each participating payee without any adjustments for any fees, refunds, credits, chargebacks, or any other amounts.

What amount is listed as “card not present transactions” in box 1b?

The amount listed in box 1b is the portion of your total gross credit card transactions that were run in a card-not-present environment. Typically, this relates to online, phone, or mail-order sales.

What are the amounts listed in boxes 5a – 5l?

Boxes 5a-5l are the gross amount of the total reportable credit card transactions for each month of the calendar year.

Why are my ACH payment transactions not included in my 1099-K form?

The IRS does not allow the inclusion of transactions not completed via credit card on the 1099-K form. Only credit card transactions on Visa, MasterCard, American Express, and Discover are included in the IRS 1099-K form.

How can I reconcile the information on my 1099-K form to the reporting on the Merchant Manager site?

The 1099-K report and the Transactions report allow you to match the 1099-K form you received to the transactions you processed with us. For step-by-step instructions on reconciling your 1099-K form, see How To Reconcile IRS 1099-K Form.

Why did I receive a separate 1099-K form from American Express?

American Express accounts serviced and funded directly from American Express are not included in the totals provided by us and are reported by American Express.

Will I receive a 1099-K form for each of my locations?

Yes, each merchant number established with Maast will receive a 1099-K form even if they share the same tax ID number.

I did not receive my 1099-K form or need another copy; how do I obtain another?

Log in to the Merchant Manager and go to Reports in the main menu. Select the 1099-K report. Find the tax year you need in the list. Click on the PDF icon in the form column, and it will bring up a digital copy, which you can print or download.

What if the account information on the 1099-K form is incorrect?

If you need to change your Legal Name or Tax ID, please contact us. You may be asked to provide one of the following: SSN, the first page of last year’s filed tax return, or a copy of your filed W-9. All changes must be made before 7 pm East on January 23rd.

Will Legal Name and Tax ID changes I made before January 24th be updated on the 1099-K file sent to the IRS?

Yes, changes made before January 24th will be updated on the 1099-K file and sent to the IRS.

Why did I receive a 1099-K form from multiple merchant service providers?

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

What happens if my Tax ID or Legal Name doesn’t match the IRS records?

The IRS requires us to collect your current Tax ID and Legal Name for reporting purposes. If our records indicate a mismatch or unmatched result in the IRS system, you will receive a mailed notification and attempted calls from us to obtain this information. If a valid Tax ID or Legal Name is not provided, your account could be subject to a tax withholding of 28% of your credit card transaction volume based on IRS regulations, in addition to state tax withholding (percentage varies by state).