1099s From PaddleGuru
PaddleGuru is a payment settlement entity (PSE) that is required to file a form 1099-K for race organizers in certain situations.
PaddleGuru is categorized as a Third-Party Settlement Organization (TPSO), and is subject to the pursuant IRS regulations.
1099-K FIling Thresholds
As a TPSO, PaddleGuru is only required to file a Form 1099-K when when reporting payments to a participating payee that exceed both 200 transactions and $20,000 during the course of the year.
Do corporations receive form 1099-K?
Yes, they do. Unlike the 1099-MISC, the form 1099-K is sent to both individuals and corporations to report transactions. For example, an LLC that elects to be treated as a C-Corporation would not be sent a 1099-MISC but would be sent a 1099-K depending on the payor’s particular obligation.
Do tax-exempt entities receive a 1099-K?
Yes, also unlike the 1099-MISC, TPSOs must issue 1099-Ks to tax-exempt entities like non-profits.
A 1099-K reports gross payments
One point of confusion for a lot of 1099-K filers and recipients alike is the reporting of gross payments. On the 1099-K, PaddleGuru is required to report the gross payments which often includes home much was sent to a payee before any processing or platform fees.