1099-K Tax Form
As a client of The Giving Block, we accept credit card donations through our product offering and those donations are processed by our parent company Shift4, who is a payment processor. As a payment processor, Shift4 is required by the IRS to generate form 1099-K for all of their customers.
A 1099-K is an information return that reports the gross amount of payment card transactions processed for your nonprofit by payment settlement entities. The form is used to report income to the Internal Revenue Service (IRS) and to reconcile payment card transactions to ensure accurate reporting of income.
- The IRS updated the threshold as of 2021 to $600 on any number of transactions.
It is mailed to the legal address on file and will be mailed no later than Jan 31st of the current year.
PLEASE NOTE: Due to an internal update within Shift4, clients will receive two notifications for 2023 transactions.
It's also important to note that the 1099-K tax form only reports the gross amount of payment card transactions processed for your nonprofit, and it does not take into account refunds, chargebacks, or any other adjustments. Therefore, it's important to keep accurate records of all payment card transactions and related expenses throughout the year.
We would recommend forwarding this form to your accounting and/or tax team. For additional information about the form, please visit the IRS website.