Form 1099-K Deadline for 2026: IRS Filing Rules and Key Dates

Staying compliant with IRS information reporting is one of the simplest ways to protect your business from last-minute scrambles, penalty notices, and avoidable rework. If you’re a payment processor, marketplace, or other payment settlement entity that issues Form 1099-K, this 2026 deadline guide tells you exactly when you must send payee copies and when you must file with the IRS—so you can close out your 2025 reporting cleanly.

What Is Form 1099-K?

Form 1099-K is an IRS information return that reports payments processed through payment cards and certain third-party network transactions. In plain terms: if your organization is the payment settlement entity (for example, a merchant acquirer or a third-party settlement organization), you may be responsible for preparing and filing this form so the IRS can match reported payment activity with the payee’s income reporting.

A quick rule to keep straight as you plan your filings:

• Payment card transactions: there’s no minimum threshold—they’re reportable even at very small amounts.
• Third-party network (TPSO) transactions: under current federal guidance, TPSOs generally aren’t required to file unless the payee’s gross payments exceed $20,000 AND transactions exceed 200 (and states may apply lower thresholds).

Importance of the Form 1099-K Deadline (2026)

The IRS doesn’t just “prefer” on-time filing—it penalizes late or incorrect Forms 1099-K and late or incorrect payee statements. For information returns due in 2026, the late 1099-K penalty figures are $60 per return/statement if you’re up to 30 days late, $130 if you’re late through August 1, $340 if you file after August 1 (or don’t file at all), and $680 per return/statement if the IRS treats it as intentional disregard (with no maximum in that case).

Filing (and delivering payee copies) on time also helps you stay out of cleanup mode—your payees get their tax info when they need it, and you reduce the odds of avoidable mismatch issues and notices triggered by bad or incomplete data.

Quick View of All 2026 Form 1099-K Due Dates

Here are the key Form 1099-K due dates for 2025 transactions to be filed in 2026:

(If the statutory deadline falls on the weekend or on a legal holiday, the due date moves to the next business day.)

Note: The IRS 10-return e-file threshold is based on your combined total of information returns and certain related forms filed in a calendar year—including Forms W-2. So if all your W-2s and 1099s add up to 10 or more, you generally must file them electronically (unless the IRS grants you a waiver).

Understanding the “1099-K $600 Rule” (and What Applies Now)

First, a quick correction: there is no “$600 single-transaction” threshold for Form 1099-K. The old change tied to ARPA was about $600 in aggregate gross payments (not a single transaction) and would have applied regardless of transaction count.

What applies now (federal TPSO rule): Under the One, Big, Beautiful Bill (OBBB), a third-party settlement organization (TPSO) generally files Form 1099-K for a payee only if BOTH are true in the calendar year:

• Gross payments exceed $20,000, and
• The number of transactions exceeds 200.

So yes—under current federal law, the $600 threshold is no longer the TPSO trigger. (Keep in mind: payment card transactions follow different rules, and state thresholds can be lower, so you still need to check any states where you file.)

Who Needs to File Form 1099-K in 2026?

You need to file Form 1099-K for 2025 payments (filed in 2026) if you’re the entity that settles payments for sellers (payees).

• Payment settlement entities (PSEs) such as merchant acquirers/card processors file for payment card transactions (reportable at any amount under federal rules).
• Third-party settlement organizations (TPSOs) such as payment apps and online marketplaces file for third-party network transactions only when the payee meets the federal TPSO threshold (see the $20,000 + 200 transactions rule).
• Business vs. personal: Form 1099-K is intended for payments for goods or services. Gifts and reimbursements labelled as personal are not reportable.
• Backup withholding: If backup withholding applies, you’ll need to file regardless of the usual TPSO threshold.

Payer Checklist Before Filing Form 1099-K

Before you start the filing process, run through these checks so that you don’t have to fix avoidable errors after the deadline and risk penalties:

• Collect the payee’s TIN and legal name: Send a Form W-9 request and collect the completed/signed W-9 so you have the payee’s correct name/TIN on file.
• Verify the name/TIN combination: Once you have the TIN, validate it using IRS TIN Matching inside 1099Online to catch and fix any mismatches early enough to solicit correct TINs.
• Reconcile your year-end totals: Figure out your 1099-K totals using year-end reports (as of December 31) so that the gross payment amounts you report for each payee don’t keep changing mid-filing.
• Review state reporting fields: Confirm the state code/identifier and any state-specific requirements (like withholding or extra IDs) before you transmit—state rules can differ.
• Lock your data early: Aim to lock down final data by mid-January so you have time to fix TIN errors, adjust totals, update recipient addresses, and resolve any state-level issues before filing.

Detailed E-Filing Workflow for Form 1099-K with 1099Online

Use this simple workflow to e-file Form 1099-K online without getting stuck in manual rework:

Step 1: Import your filer + recipient data (bulk upload)

Upload your data that is related to Form 1099-K using a CSV/Excel bulk import so you can file in batches without retyping.

Step 2: Run TIN Matching (before you submit)

Next, validate the Name/TIN combination against IRS records to help reduce mismatches, rejections, and possible penalties.

Step 3: Preview the form and fix errors (if any)

Carefully review information on the forms, like payee details, totals, and state fields, then make corrections before transmission.

Step 4: Deliver recipient copies

Furnish Copy B to recipients by the payee copy deadline and download PDFs for your records and print/mail recipient copies if needed.

Step 5: Submit to the IRS and track status

After you transmit your Forms 1099-K, you’ll receive a filing status. If the IRS rejects it, correct the errors and resubmit (1099Online supports re-filing after a rejection).

Quick Penalty Breakdown and What You Can Do About It

If you file Form 1099-K late, file it in the wrong way (paper vs. e-file when e-filing is required), or submit incorrect payee/amount details, the IRS can assess penalties. The amount generally depends on how late the return (and payee statement) is and whether the IRS treats the issue as intentional disregard.

Basic Error Prevention With 1099Online

1099Online can help you catch common 1099-K filing issues early, including:

• Personal payments: Flags transactions that don’t seem to be related to goods or services.
• Missing TIN: Catches TIN mismatches and prompts you to collect a W-9 and helps you apply backup withholding (24%) when required.
• Negative totals: Alerts you when refunds/chargebacks appear to exceed payments, so you can review and fix before filing.
• Wrong file format: Converts your upload into the correct 1099-K filing format so you don’t have to rework templates.

Real-Life 1099-K Filing Scenarios

The fastest way to understand when Form 1099-K is required—and how to avoid late-filing penalties—is to see how the rules play out in real situations. Here are a few real-life filing scenarios you can use as a reference:

FAQs

1. Are personal transfers reportable?

No. Personal transfers like gifts or reimbursements aren’t reported on Form 1099-K, as it is meant for payments tied to goods or services.

2. Do refunds lower the federal TPSO threshold?

Form 1099-K and the TPSO threshold are based on gross payments—refunds, chargebacks, and fees don’t reduce the amount used for reporting.

3. If there is an error in the online form, can the payer resubmit the corrected form online?

Yes. If you discover an error after filing Form 1099-K, file a corrected return by preparing a new Form 1099-K and marking it CORRECTED (and furnish a corrected payee statement). The IRS’s online fillable PDF copies of Form 1099-K are for furnishing recipient statements and your records—not for filing Copy A with the IRS.

4. Are W-2 forms also counted in the 10 return e-file rule?

Yes. Starting with tax year 2023, if you have 10 or more total information returns, you generally must file them electronically. Aggregate forms, including Forms W-2 (which are e-filed with the Social Security Administration) and information returns like the 1099 series.

5. What happens if the payee’s TIN isn’t available?

If the payee doesn’t furnish a TIN, you should solicit it (for example, using Form W-9). If backup withholding applies, you generally must withhold 24% from reportable payments until the TIN is provided, and report any federal income tax withheld on the information return (for Form 1099-K, this is reported in Box 4).

6. Can the filer request an extension to send recipient copies?

Yes. To request an extension to furnish recipient statements, you must fax Form 15397 by the due date—an approved request will give you up to 30 extra days.