1099-K

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

IRS regulations (per IRC Section 6050W) stipulate that EC Suite must now file Form 1099-K for all clients 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)

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

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.

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.

• I don’t live in the US but my account is located in the U.S. do I have to or how do I claim those funds?
• I opened an account in the U.S. for someone else outside the U.S. but they get all the money. How do we report that?
• I want to move my account out of the U.S. Can I do that and can that be retroactive?
• I no longer own the account but it is still in my name but I have not received any of the funds generated. How do I report that?
• Will you be providing me with a breakdown of the fees, refunds, chargebacks, affiliate payouts, and splitee payouts?
• Can I supply tax reporting information (name, address, or TIN) of someone else to report on my account?
• Does the information I give you have to match what is on my account?
• Why aren’t you requiring that we send in signed IRS form W-9s?
• What date do you use for Change of Account Ownerships and are the transactions split between days or billing periods between the seller and buyer?
• How am I supposed to report splitee income when they are not located in the USA?
• How am I supposed to report affiliate income when you won’t provide it to me?
• How am I supposed to get a breakdown of what my splitees were paid so I can 1099 them?
• How do I update my tax information?
• Will my account’s funds be reported under my billing descriptor?
• My account pays out to models and affiliates. Why am I responsible for the entire Gross?
• If I don’t meet the income criteria, do I still need to have valid tax information?
• I own multiple accounts. How is the gross reported (separately or summed)?
• I just bought this account during the tax year. Am I responsible for the transactions under the previous owner?