1099K FAQ

Beginning with the 2011 tax year, all payment providers based in the United States, including CCBill, are required to report transaction information to the IRS (Internal Revenue Service) about merchants who use CCBill's processing service to collect payment for goods and services sold.

IRS regulations (per IRC Section 6050W) stipulate that CCBill must now file Form 1099-K for all merchants that fit the following criteria:

  • U.S.-Based Company
  • Exceeds $20,000 Gross Processing Volume
  • Has more than 200 total transactions for any given tax year (2011 forward)

In an effort to help you understand these changes, we have put together the answers to several Frequently Asked Questions surrounding 1099-K compliance, collected here and linked below for your convenience.

At this time, 1099-K regulations do not apply to affiliates

For more information on IRC Section 6050W, consult your tax professional or refer to the IRS site at http://www.irs.gov/irb/2010-43_IRB/ar08.html.