The 1099 form is for reporting to the Internal Revenue Service (IRS) and summarizes the sales activity of your account. It assists you in reporting your taxes and is provided to you, the IRS, and some US states. For more help understanding your 1099, visit IRS.gov.

Importance of Correct Tax Information

It is important to keep your business and tax information current and up to date. Inaccurate information may lead to delays in reporting and filing of the 1099 form and possibly hold on funds from residuals or deposits. Authorize.net periodically reviews (yearly) tax information for IRS reporting and may request updated W-9 or SS-4 documentation to ensure accuracy and avoid any IRS-imposed fund holds or penalties.

To update your business and tax information, see: Why is Authorize.net requesting my W-9 or SS-4 and how to provide it?

Who Receives 1099 Forms from Authorize.net?

Authorize.net does not issue 1099 forms for Payment Gateway merchants. Merchants who only use Authorize.net for their payment gateway should contact their Merchant Service Provider (MSP) to obtain the 1099 form for their Merchant Account for Credit Card processing.

Authorize.net issues 1099 forms to the following merchants and resellers/partners at the end of January:

• Partners (resellers of Authorize.net) who earn more than $600 in commission throughout the year. Corporations, including C Corp and S Corp, will not receive a 1099. Please note that the IRS may change the filing thresholds, see: IRS 1099-K Blog Post
• eCheck Merchants will receive a 1099 based on the current criteria of $5,000 or more in eCheck volume based on the IRS’s phase-in approach to the $600 threshold to come. Please note that the IRS may change the filing thresholds, see: IRS 1099-K Blog Post
• All-in-one Merchants (merchants who use Authoriz.net for their payment gateway, eCheck and merchant account)
  • Merchant Account you will receive a 1099 from your Merchant Service Provider (MSP) which in this case would be Global Payments.
  • eCheck will receive a 1099 based on the current criteria of $5,000 or more in eCheck volume based on the IRS’s phase-in approach to the $600 threshold to come. Please note that the IRS may change the filing thresholds, see: IRS 1099-K Blog Post

When are 1099 Forms Issued?

If your business qualifies for a 1099, the previous calendar year form will be mailed to you prior to January 31. If you have not received your 1099 after that time, please contact Authorize.net Client Services.

1099 FAQs

• Why am I receiving a 1099 form?

  • It is a requirement from the IRS for Authorize.net to report eCheck merchants the gross amount of eCheck transactions processed by month during the year. For Resellers/Partners, it is to report the amount we paid you during the year as compensation for services.

• What do merchants or partners do with this form?
  • You will need to provide this form to your tax preparer and discuss how to handle this form with them. Authorize.net is sending you the form to comply with IRS requirements but is not in a position to offer tax advice or guidance for your specific situation.
• The information on the form is not correct, what do I do?
  • Please contact Authorize.net Client Services. You may be asked to provide documentation and information needed to review and get any form corrections.
• How can the 1099 be resent?
  • Please contact Authorize.net Client Services to request your 1099 to be resent.