1099-K Information and FAQs

ProPay annually sends IRS 1099-K forms to qualified merchants. Details of qualification criteria can be located at https://www.irs.gov/businesses/understanding-your-form-1099-k.

Data Validation

• Merchants should ensure their business, address and tax identification data on file with ProPay is accurate prior to Dec 31 each year to ensure accurate and timely delivery of 1099-K forms.

1099-K Form Delivery

• The forms will be sent from ProPay to qualified merchants.
• For SSN-validated accounts, forms are generally delivered to the home address of the principal owner of the account.
• For EIN-validated accounts, forms are generally delivered to the business address for the merchant.  If none exists, it will be sent to the home address submitted for the account.

1099-K Form Corrections and Updates

• Address corrections only apply to subsequent tax years and do not generate a corrected form to be mailed. 
• Corrections made to Legal Name or Tax ID will trigger the hard copy 1099-K corrected forms to be re-mailed. Changes for amended 1099-Ks should always be accompanied by an email to the Wayroo Payments Support team with accompanying documentation and a request for an amended 1099-K. 
• Corrected or updated 1099-K forms may take 4-6 weeks to process.
• Corrections are accepted until the end of June for the prior year. Generally, corrections must be submitted by the 11th of the month in order to be included in files sent to the printer.
• If the data update is only for current and future years, these updates can be made directly in the Wayroo app – no notification is needed to the Wayroo Payments support team.

Visit this article to learn more.

Frequently Asked Questions (FAQs)

How will merchants receive 1099-K forms?

Direct mail from ProPay.

When will forms be sent?

Prior to Jan 31 each year.

To which address will the forms be sent?

To the Know-Your-Customer (KYC) validated home address on file, typically the merchant principal’s home address for SSIN-validated accounts, or the business address for EIN-validated accounts.

How are the totals calculated?

Volumes include all settled/completed credit card transactions or ACH transactions. Credit Card processing is summed as Payment Card volume.  ACH volume is reported as ‘3rd Party Processing’. From tax year 2021 forward, volumes will no longer include Spendback and SplitPay volume.

How should a merchant correct inaccurate data?

For current and future tax years, the merchant should keep their information updated in Wayroo (Settings > Payment Processing and Banking > Business Info).

If the data correction is for an amended 1099-K, the merchant should contact Wayroo Payments Support to request an amended 1099-K.

How long does a merchant have to correct invalid data?

For the current year, merchant data may be corrected until Dec 31 without requiring a contact to contact support.

To correct information on 1099-K forms for the prior year, merchants may submit corrections through June. Merchants must submit these corrections to Wayroo directly.

After June following the tax year, merchants will need to work directly with the IRS.

How should I request a copy of a missing or corrected 1099-K form?

Corrections made to Name or Tax ID will trigger the hard copy 1099-K corrected forms to be re-mailed.

Otherwise, merchants can contact Wayroo Payments Support.

What if the 1099-K and data was reported to the IRS on the wrong Tax ID?

The merchant should submit a copy of a correct W-9 form to Wayroo in order for the data to be corrected with ProPay and the IRS.

What if a merchant sold their business during the tax year?

The former owner should close their merchant account and the new owner should create a new merchant account for the business using their own personal information and tax details.

How long will it take to receive a corrected or updated copy of a 1099-K?

Processing requests for new forms may take up to 4-6 weeks.

How can I get further help?

Merchants can contact Wayroo’s Payments Support team by emailing payments@wayroo.com or calling 913-428-1199 to request help with 1099-Ks.