In 2022 the IRS issued new thresholds for users that will now be required to receive a 1099-K tax form from financial networks. This includes networks like Venmo, PayPal, Cash, and Dwolla. Dwolla is the financial network provider that powers our Payment Center. Dwolla will request a W-9 tax form from all eligible users to meet those obligations. This request will be sent via email and is mandatory. Payment receivers must complete this W9 form to meet the new IRS requirements. Users that do not complete the form will result in the suspension of their Payment Center account, and they will no longer be able to receive payments via the Payment Center.
This email request is only sent to users that meet the reporting thresholds, and that have not previously completed this form request for Dwolla.
NOTE: A 1099-K tax form is not the same as a 1099-MISC or 1099-NEC tax form that officiating organizations typically send to their officials. This is an entirely separate tax form, although it often represents the exact same earnings. These are informational returns, and the gross payments reported on a Form 1099-K do not necessarily represent reportable income. The form should be used in conjunction with other tax forms (like W-2's, 1099-MISC, and 1099-NEC forms) and tax records (bank statements, invoices, etc.) to determine your taxable income. You should consult your tax advisor to determine your tax reporting requirements.
Does the 1099-K replace my officiating organization's reporting requirements?
No. A 1099-K form is entirely separate. Officiating organizations are still required to comply with state & federal reporting thresholds for W-2, 1099-NEC, and/or 1099-MISC tax forms. A 1099-K tax form does not replace this reporting requirement. You should consult your tax advisor to determine your tax reporting requirements.
Where can I learn more?
If you want to learn more, you can refer to the IRS website, which outlines full details on the 1099-K tax form, as well as the traditional 1099-MISC and 1099-NEC tax forms you will still continue to receive from your officiating organizations.