The IRS requires payment processors to file 1099-K reports for all merchants that exceed the IRS minimums set for that calendar year.
For 2025, the minimum is $20,000 and 200 payments. Additionally, some states also require a local filing depending on various local limits. You don’t need to do anything to file your 1099-K. Your 1099-K form will be delivered at the end of January.
The 1099-K includes the gross amount of payments collected via card and ACH (i.e. all sales prior to netting out refunds and other adjustments) for the year along with the total number of transactions. Your 1099-K will show Method’s contact information in the Filer’s Name section at the top left, and Rainforest’s contact information along the left in the PSE field. The account number is the Rainforest MID assigned to your account at onboarding.
If you have questions about why you received a 1099-K, see the IRS website or the commonly asked questions below.
Commonly asked questions
Why does Method Pay file a 1099-K with the IRS?
We are required to report to the IRS all credit card and ACH transactions processed in the prior tax year. The amount reported to the IRS is for gross credit card sales, not including any adjustments or credits, fees, refunds, or any other amounts. Transaction amounts must be reported to the IRS by the date of the transaction in a calendar month, not by the date settled or paid out.
For more information on IRS requirements, please refer to the IRS site.
What is the purpose of the 1099-K form?
The IRS 1099-K form was introduced to ensure that all merchants are correctly reporting sales for tax purposes. It requires merchant acquirers to report the payment transactions they process on behalf of the merchants.
Do these regulations apply to nonprofit organizations?
Yes, these regulations apply to both nonprofit and for-profit organizations and entities.
When should merchants receive their 1099-K?
Emails inviting merchants to access their electronic 1099-K copy will be sent at the beginning of January to the owner’s email listed on the merchant application. If a merchant doesn’t access their electronic copy, they will be mailed a paper copy to the address listed in their merchant application by January 31st.
Do merchants have to report the amounts from the 1099-K on their tax return?
Please consult a tax professional or the IRS for additional information on how the amounts reported on the 1099-K should be reflected in their tax returns.