File 1099-K Online for 2026 Tax Year

What is Form 1099-K?

Form 1099-K helps the IRS match payment information reported by payment settlement entities with the income reported by participating payees. The form is used to report payment card transactions and qualifying third-party network transactions. If you are a payment settlement entity, you may need to file Form 1099-K when your transactions meet IRS reporting requirements. Knowing who must file, what to report, and when the form is due can help you stay compliant and avoid penalties.

This guide explains everything you need to know about Form 1099-K for the 2026 tax year, including the latest changes and how to eFile the form quickly and accurately with 1099Online.

What's New in Form 1099-K for the 2026 Tax Year?

The IRS has introduced several important updates to Form 1099-K for the 2026 tax year. The following changes are the most significant.

OBBBA threshold update

The One, Big, Beautiful Bill restored the higher Form 1099-K reporting threshold for third-party network transactions. For 2026, a third-party settlement organization generally must file Form 1099-K for a participating payee only when both conditions are met: total payments exceed $20,000, and the total number of transactions exceeds 200.

New boxes for tips

Form 1099-K has been updated to allow reporting of cash tips and the corresponding Treasury Tipped Occupation Code.

FIRE retirement and IRIS-only filing for 2026 returns

The IRS is retiring the FIRE system at the end of 2026. Beginning with tax year 2026 returns filed in early 2027, IRIS is the only IRS intake system for eFiled information returns covered by Publication 1099. Form 1099-K filers should use the 2026 Form 1099-K instructions along with Publication 1099 for general information return filing rules.

Who Must File Form 1099-K?

A payment settlement entity, known as a PSE, must file Form 1099-K. For payment card transactions, the entity must report all amounts. For third-party network transactions, a third-party settlement organization is required to report payments to a participating payee only when those payments exceed $20,000, and the total number of transactions exceeds 200.

This filing requirement applies to payment settlement entities, including merchant acquiring entities for payment card transactions and TPSOs for qualifying third-party network transactions.

What Transactions Must Be Reported on Form 1099-K?

Form 1099-K is used to report the following:

• Payment card transactions
• Qualifying third-party network transactions
• The gross amount of total reportable payment transactions for each participating payee
• Monthly gross payment amounts for the calendar year

Note: The gross amount, as defined by the IRS, is the total reportable payment amount before any reductions. Credits, discounts, fees, refunds, shipping charges, cash equivalents, or other adjustments should not be subtracted from it.

Exceptions to Form 1099-K

The following transactions are generally not reportable on Form 1099-K:

• Withdrawal of funds at an ATM
• Cash advance or loan taken out against the cardholder's account
• When a check is issued in connection with a payment card and accepted by a merchant or payee
• Payments made with a card that can only be used with the card issuer or a related business

Key Boxes on Form 1099-K

Several boxes on Form 1099-K deserve close attention:

Note: The IRS also notes that third-party settlement organizations do not use merchant category codes and should not complete Box 2.

Form 1099-K Filing Requirements

To file Form 1099-K accurately for the 2026 tax year, make sure you have the following information ready:

• Filer name, address, telephone number, and federal identification number
• The correct filer classification as PSE or EPF/other third party
• Participating payee information
• Account number, when multiple accounts exist for the same recipient
• Gross annual payment amount
• Monthly payment totals
• Merchant category code, when applicable

Note: An account number is required if you have multiple accounts for the same payee and file more than one Form 1099-K for that payee. Even when it is not required, the IRS recommends adding an account number to help identify the return and process corrections accurately.

Instructions to eFile Form 1099-K

Before you begin, check that all filer and payee information is complete and correct. Then, you can eFile Form 1099-K for the tax year 2026 using the following steps.

Step 1: Enter the filer and payee information.

Step 2: Report the total gross amount for the year, along with the monthly payment amounts.

Step 3: Complete the account information, MCC, filer type, and transaction type.

Step 4: Check the return for errors, then submit it electronically to the IRS.

Form 1099-K Due Dates for the Tax Year

For the 2026 tax year, use the following IRS due dates for Form 1099-K:

The recipient copy deadline moves to February 1, 2027, because January 31 falls on a Sunday. The paper-filing deadline moves to March 1, 2027, because February 28 falls on a Sunday. The electronic filing deadline remains March 31, 2027.

Penalties for Filing Form 1099-K Late

Filing Form 1099-K late, failing to file it, or filing it with incorrect information can result in IRS penalties.

Based on the latest IRS-published penalty amounts for returns due in 2026, the penalty is:

• $60 per return if corrected within 30 days,
• $130 per return if corrected more than 30 days late but by August 1, and
• $340 per return if corrected after August 1 or not filed at all.

Intentional disregard is subject to a penalty of at least $680 per return, with no maximum.

The best way to avoid these charges is to file on time and double-check your information.

How to eFile Form 1099-K Online with 1099Online

Step 1: Add Filer and Payee Information

Enter filer details, payee details, and annual and monthly payment totals.

Step 2: Review the Details

Check the data that you have filled in on the form, including names, TINs, account numbers, monthly amounts, filer type, and transaction type.

Step 3: Send Recipient Copies

Next, use the completed Form 1099-K information to prepare the recipient copy. Send it by mail or electronically with the recipient’s consent by the applicable deadline.

Step 4: Submit Your Returns

Transmit your returns securely using the eFile workflow and manage all filing records from your dashboard.

Why File Form 1099-K with 1099Online

1099Online is designed to simplify the Form 1099-K filing process with features that support speed, accuracy, and security.

• Secure transmission: A secure online filing workflow protects your data at every step.
• Bulk eFile support: Excel and CSV templates make higher-volume filing efficient.
• Real-time TIN matching support: Reduce errors before you file.
• Flexible scheduling: Prepare your returns now and file them on time.
• Recipient copy delivery: Manage eFiling and eDelivery in one place.
• Start free: Begin preparing returns and pay only when you eFile.
• Expert support: If a return is rejected due to an inaccuracy or inconsistency, the 1099Online support team can help you with resolving the issue and resubmitting your Form 1099-K.

Frequently asked questions