In the next week, we will be mailing 1099K forms to some of our customers. As stated in http://www.irs.gov/uac/General-FAQs-on-New-Payment-Card-Reporting-Requirements, these are informational forms that are required by the government. The form looks like the one on the right. Note that RunSignUp is our company’s trade name – our legal name is Bickel Advisory Services, LLC.
Internal Revenue Code Section 6050W requires that we report certain payments to customers based on a combination of Gross Payments and Volume. Currently the law requires we report once transactions exceed $20,000.00 AND 200 transactions.
It is likely that later this year we will begin to require all customers with volume over $20,000 to switch to our Direct Payments model. Our credit card processor Braintree/PayPal will then be providing the 1099K’s in 2014.
Here are some helpful links to understand this better:
If you have questions, please email firstname.lastname@example.org.