Taxpayer Information, Forms W-9 and 1099-K
1) There are two sets of reporting limits at play. Please understand that the limits and our requirements have changed entering 2023.
For tax year 2022 and prior, You will receive a 1099-K if you have gross transactions that exceed $20,000; AND more than 200 transactions. (In Massachusetts, Vermont, Virginia, Maryland, if you meet or exceed $600 in gross transactions, you will receive a 1099-K).
For tax year 2023, The IRS lowered this limit to $600 in gross payments for all taxpayers regardles of state.
2) For tax year 2021 only, you may have received TWO 1099-Ks: One from Pioneer Registration Services, LLC if you reached 2021 threshold on or before February 19, 2021 and one from Outside Interactive, Inc. for transactions February 20, 2021 through December 31, 2021. This is a result of our acquisition by Outside Interactive, Inc. effective February 20, 2021.
Why am I being asked to submit taxpayer information?
As a payment settlement entity, the IRS requires that athleteReg, a division of Outside, Inc., send out 1099-K forms to all U.S. based entities that process gross payments of $600 or more. In order to do so, we collect your taxpayer information. The information we collect is found on IRS Form W-9.
This limit and reporting requirement is effective January 1, 2023. You can read more about 1099-K reporting requirements from the IRS here.
Did these limits change?
Yes, these limits are changing for 2023. Previously these limits had been $20,000 and more than 200 transactions annually. However, these limits have been lowered to customer processing just $600 or more in a year. The transaction limit of 200 has been lifted with the new update.
The American Rescue Plan Act of 2021 (ARPA) was signed into law on March 11th, 2021 and will become effective in 2022 and will impact 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.
You can read more about 1099-K reporting requirements from the IRS here.
What’s a 1099-K?
If you meet the criteria of processing gross payments that meet or exceed $600, you will receive a 1099-K).
This is an informational form that summarizes the sales activity of your account and is designed to assist you in reporting your taxes. According to the IRS, this provision is designed to improve voluntary tax compliance by business taxpayers and assist the IRS in determining the tax returns are correct and accurate.
When do I need to submit taxpayer information?
To maintain compliance, if your event is already open and transacting when this change occurs, we’ll simply hold payment until this form is complete just as we’ve done with the old requirements. You’ll see a notice in your event director area if this is happening.
For events that have yet to open before this change, you’ll need to complete this W-9 information before your event can accept registrations. We’re happy to get it published to our calendar and you can still access the event to edit and market, but it cannot collect funds until we have this required tax documentation. We’ll also provide notice in the event director area if this is the case.
What Information Do You Collect?
The information we collect appears on IRS Form W-9 and should be entered into the Taxpayer Information section of each of your event’s payment profiles. We ask for:
Full Name: Your legal name (as shown on your income tax return).
Federal Tax Identity Type (Individual, CCorp, SCorp, Partnership, Trust, LLC-C, LLC-S, LLC-P, Other)
Taxpayer Identification Number (TIN): Employer Identification Number (EIN) for a business, or a Social Security Number (SSN) for individuals.
Your electronic signature: Your full name, which will be your electronic signature.
How do I provide my taxpayer information?
To fill out your Form W-9, login to your event director account, click on the ‘Payment Profiles’ menu item from your Event Director Tasks.
Click “Edit” by the payment profile that needs tax information.
Once here, choose to supply your W9 info now:
Fill in all required fields accurately and click “Save Payment Details”:
More details, tips, and resources
NOTE: If you previously provided a valid Form W-9, we won't ask you to fill out another one. If the information has changed, you can update it by editing that payment account and tax information. You’ll need to complete the entire Form W-9 when updating.
NOTE: athleteReg and Outside, Inc. can’t provide tax advice. If you have any questions about the Form W-9, or Form 1099-K, please consult a tax professional.
TIP: The financial threshold includes every transaction processed in your account. This includes refunded or removed registrations, not just those we send you payment for.
To better understand your 1099-K, click here
To see an example of the 1099-K, click here
For assistance in filing your 1099-K, please consult a Tax Advisor