Zift 1099-K Tax Reporting

The IRS uses Form 1099-K to track payment transactions processed through third-party networks, such as credit card companies and payment processors.

All Form 1099-K merchant copies will be printed and mailed by January 31, 2025, meeting Internal Revenue Service (IRS) guidelines.

1099-K Forms will be mailed individually from Zift, LLC. 

The FILER name for your credit/debit card 1099-K Form will be TSYS Acquiring Solutions, LLC. They are a third party network we currently use to file your credit/debit card 1099-K forms.

Please contact us if you need us to send you a digital copy of your 1099-K form.

What Are The 1099-K Filing Thresholds?

Reportable Volume

The IRS 6050W mandate requires that the gross amount of all reportable payment card transactions is reported to the IRS annually and that the report includes 12 monthly totals and an annual total.

The gross amount is defined as:

The total dollar amount of aggregate reportable payment transactions for each participating payee without adjustments for credits, cash equivalents, discount amounts, fees, refunded amounts, or any other amounts.

Reports include US dollars and transaction dates. They do not include the posted or deposit dates.

Since the Form 1099-K reportable sales volume uses the transaction date instead of the posted deposit date, the reported volume will not match posted volume reporting or monthly merchant statements. 

Reasons for Differences Between Your 1099-K, Deposits and Your Monthly Statement

1. Gross Sales vs. Net Deposits

   • The 1099-K reports total gross sales processed via credit cards, before deductions.
   • Your actual bank deposits may reflect net amounts after deductions like:
     • Processing fees
     • Refunds
     • Chargebacks
2. Timing Differences

1. • The 1099-K reports transactions based on when they were processed, not when the funds were deposited into your bank.
   • Your monthly merchant statement is a summary of transactions based on the deposit date and not the transaction date. 
   • Some sales at the end of one month might be deposited in the next month, causing timing mismatches.
   • Transactions processed the last few days in December of one tax year may be deposited in January of the next tax year but are reported for the tax year they were processed. 

How to Reconcile Your 1099-K with Deposits and Monthly Statements

To get the reportable Gross Sales amount from your monthly statement subtract the total rejects from the total sales. The sales column is a total of all sale attempts. The rejects column represents declines and voids which are not included in the reportable Gross Sales amount to the IRS.

• Subtract any Direct Debit sales. Your 1099-K only includes credit card sales. 
• Review your January and December statements to see if any transactions were processed in one tax year and deposited in the next.
• Subtract any transactions processed in the prior tax year from the total gross volume amount.
• Add any transactions processed in the current tax year that were deposited in the next tax year to the total gross volume amount.