Races, Events and Charities will be sent the 1099-K form by 1/31 on the basis of Gross Transactions processed per Legal Entity in the prior calendar year. The forms will be uploaded to the Legal Entity page in early January with notification by email to Legal Entity Admin(s). The Entity can agree to electronic delivery and download the form at any time. If electronic delivery is not accepted by 1/25 a form will be mailed by 1/31.
The threshold for issuing forms is in transition over the next few years.
For 2024: Gross Transactions of $5,000.00.
For 2025: Gross Transactions of $2,500.00
Beginning 2026 and thereafter: Gross Transactions of $600
Some States have a lower threshold between $600 and $2500. Please check on your State's regulations to verify.
Hint: Since we are required to report on the gross amount processed in any year the form may not match the total received in payments. Funds paid out early in the year that were processed in the previous year will not be included. Funds that were processed at year end but not yet paid will be included. To reconcile your accounts you should include in your deposit records the total processed (less RSU processing fees and sales tax) and deduct as expenses any refunds or chargebacks. Please consult your advisor for the best advice.
For more information, see links below:
IRS 1099-K FAQs
Understanding Your Form 1099-K
As a Payment Facilitator, RunSignUp, under the IRC Section 6050W, is required to send 1099-K forms to all entities (including Charities and Government organizations) that meet the above criteria. According to the IRS, this provision is designed to improve voluntary tax compliance by business taxpayers and assist the IRS in determining the tax returns are correct and accurate.
As per the Race Contact, you will be solely responsible for and will pay any and all use, excise, sales and privilege taxes, duties, value added taxes, fees, assessments or similar liabilities however denominated and chargeable by a governmental authority as a result of any transactions, registrations or any other service or deliverable provided under this Agreement excluding taxes on RunSignup's net income.
For assistance in filing your 1099-K, please consult a Tax Advisor.
If you believe the information on your 1099-K form is incorrect, please email [email protected] for assistance.