Beginning with the 2011 tax year, all payment providers based in the United States, including CCBill, are required to report transaction information to the IRS (Internal Revenue Service) about merchants who use CCBill's processing service to collect payment for goods and services sold
IRS regulations (per IRC Section 6050W) stipulate that CCBill must now file Form 1099-K for all merchants that fit the following criteria:
In an effort to help you understand these changes, we have put together the answers to several Frequently Asked Questions surrounding 1099-K compliance, collected here and linked below for your convenience.
At this time, 1099-K regulations do not apply to affiliates
For more information on IRC Section 6050W, consult your tax professional or refer to the IRS site at http://www.irs.gov/irb/2010-43_IRB/ar08.html.
As long as the address on the account is located in the U.S., we are required to report the tax information to the IRS.
We cannot provide assistance on how to claim or report the funds; please consult your tax advisor.
In order to move your account out of the U.S., you must complete an ownership change. You or the person/company whose information is being added need to provide identification or other documentation that the company no longer resides in the U.S. (It must show a non-U.S. address or be from a non-U.S. country.)
However, our company policy is that information we collect for 1099-K reporting does not have to match the information we collect for merchant account registration or underwriting. Therefore, you can supply a non-U.S. person/company’s tax information to us for 1099-K tax reporting (they must have a U.S. Tax ID to do this) without doing an ownership change, and all taxes will be reported to that person/company, even if they are not in U.S.
Account changes cannot be retroactive.
We can contact the current owner to have them provide updated tax information, and once changed and validated you will no longer receive a 1099-K for any funds on that account.
We cannot provide assistance on how to claim or report the funds; please consult your tax advisor.
Information on refunds, chargebacks, and affiliate payouts for your accounts and subaccounts are already available in the Transaction and affiliate reports in the Admin Portal.
Fees can be viewed in the Check Amounts report in the Admin Portal.
Payouts to splitees for any subaccount under your main account can be viewed using the “email” feature in the Check Amounts report. For information about splitees to subaccounts in someone else’s main account, please contact our 1099 Team at 1.855.330.6230 or 1099team@ccbill.com for assistance.
Yes, you can. Please send an email to accountsupport@ccbill.com to update your 1099K address. Be sure to include all of your relevant account information in the email and send it from the email address we have on file for your account.
No, it doesn’t. Our company policy is that the information we collect for 1099-K reporting does not have to match the information we collect for merchant account registration or underwriting.
The IRS regulations that require us to send you 1099-Ks for gross transactions do not require signed W-9 forms, and only require that we validate client-provided names and TINs against the IRS databases.
Account ownership changes are effective at the beginning of the next pay week (Sunday 12:00 am MST/UTC -7) either:
Once that date is reached, all funds prior to the switch are the responsibility of the seller (old owner), and all funds beginning with that pay period are the responsibility of the buyer (new owner).
We cannot provide assistance on how to claim or report the funds. Please consult your tax advisor for further information.
The affiliate payouts taken from your gross are available in reports in the Admin Portal.
We cannot provide assistance on how to claim or report the funds, please consult your tax advisor.
Payouts to splitees for any subaccount under your main account can be viewed using the “email” feature in the Check Amounts report. For information about splitees to subaccounts in someone else’s main account, please contact our 1099 Team at 1.855.330.6230 or 1099team@ccbill.com for assistance.
We cannot provide assistance on how to claim or report the funds, please consult your tax advisor.
Currently, you can update the tax information in our system by contacting our 1099 Team at 1.855.330.6230 or 1099team@ccbill.com for assistance.
Additionally, if your tax information is not stored in our system or is invalid, you will be able to log into the Admin Portal and update it yourself beginning in the near future when we release new features in the Admin Portal.
No. They will be reported under the listed personal or company name, address, and Tax ID you provide, along with a “merchant category code” based on the merchant account that your transactions go through.
The IRS regulations specify that all reporting is to be done on gross amounts, before any deductions or reductions due to fees, holdback, chargebacks, refunds, or affiliate or split payouts.
Yes. Our company policy is to require all U.S. merchants to provide valid tax information, because even if your account does not meet the criteria this year, it may in a future year.
To determine if you need to receive 1099-Ks, we evaluate the threshold (200 transactions and $20,000 total transactions) across all main accounts you own.
Then, if the combined totals are over the thresholds, we issue a separate 1099-K for each main account containing gross transaction information only for that main account.
A “main account” is owned by a merchant and contains 1 or more merchant accounts grouped together under it. So if you own multiple merchant accounts, but they are all grouped together this way, you will get 1 1099-K for all of them. However, if you own multiple merchant accounts and they are in more than 1 group, you will get 1 1099-K for each main account group.
No. Transactions that took place before your W-9 information was on the account belong to the previous owner. They will not be included on any tax reporting for you.