Reporting now required for any entity processing $600 or more
The IRS requires payment settlement entities like athleteReg to send out 1099-K forms to all U.S. based entities that process transactions above specific thresholds.
While previously these limits had been $20,000 and more than 200 transactions annually, they have been lowered to include customers processing $600 or more in a year.
The American Rescue Plan Act of 2021 (ARPA) was signed into law on March 11th, 2021 and will become effective in 2022, impacting the January 2023 filings. With this change, we are now required to file a 1099-K and send a copy of the form to the IRS and you, the customer, for processing transactions amounting to $600 or more in a year. The transaction limit of 200 has been lifted with the new update.
What does this mean for my event?
All athleteReg sites will require you to enter your W-9 information using the “Taxpayer information” form in your event’s payment center. You can also access it from the list of payment profiles in your event director profile.
To maintain compliance, if your event is already open and collecting paid registrations and merchandise orders, we’ll simply hold payment until this form is complete as we’ve done with the previous requirements.
For events opening in 2022, you’ll need to complete this W-9 information before your event can accept registrations. We’re happy to publish the event to our calendar and you’ll still be able to edit and market your event, but it cannot collect funds until we have this required tax documentation.
You’ll see a notice in your event director area if we are missing W-9 information from you.
Aren’t you already taking care of taxes for us?
Yes, as a marketplace facilitator we are in fact collecting and remitting sales tax at the state and jurisdiction level for your events and merchandise items. We’ve got you covered there!
However, the 1099-K is still a supporting piece of documentation regarding total transactions that we are also obligated to produce.
What should I do?
In order to ensure there is no disruption in payments or registrations in your events, please log in to your event director account and complete the Taxpayer Information form for your payment profile now. If you are setting up a brand new account or payment profile, plan on having your W-9 information ready to enter.
Where can I learn more?