As a US-based seller on Hopoti, it's important to understand how IRS Form 1099-K applies to your transactions. This guidance outlines how Hopoti handles 1099-K reporting and what steps you need to take to ensure compliance.
In short, each applicable seller will receive a 1099-K form as a PDF to their email in January for the previous calendar year. Hopoti will file the form with the IRS and any relevant states, and you are responsible for reporting your income.
📊 What is IRS Form 1099-K?
IRS Form 1099-K is a tax document issued to report payment transactions processed through a third party, such as a digital platform. This form is required for US-based sellers who meet certain thresholds of income and transaction volume during the calendar year.
💳 Reporting – how does Hopoti handle these forms?
Consent for Paperless Delivery
By agreeing to the Terms of Service for Business Accounts, or giving us a paperless delivery consent, you agree to receive all applicable tax forms electronically, including IRS Form 1099-K. This allows us to deliver your tax forms securely and efficiently.
Electronic Delivery
Hopoti will send your 1099-K form via email in January, well before the IRS submission deadline. The form will be sent as a PDF attachment to the email address associated with your account. Make sure your contact information is up to date to avoid delivery issues.
Optional Postal Delivery
If you prefer to receive your 1099-K form by mail, you can request postal delivery by contacting Hopoti Support. Please note that additional administrative charges may apply for postal delivery.
IRS and State Filing
Hopoti will file your 1099-K form directly with the IRS and any relevant state tax authorities as required by law. There is no action required on your part for this filing. Ensure your tax information is accurate and complete to avoid delays.
💼 Seller responsibilities – what do I need to do?
Ensure Accuracy
Verify that the personal and tax information on your Hopoti Account, Business Account, and Stripe Account is correct. This includes your full name, Social Security Number (SSN) or Employer Identification Number (EIN), and mailing address. You can check these details directly in Hopoti and from Stripe through "Hopoti Business Settings > Payments > Fill in Stripe information".
Report Your Income
Use the information provided on Form 1099-K to report your income accurately when filing your taxes. Note that you are responsible for reporting all your income, even if you do not receive a 1099-K form.
🛟 Any questions?
We're trying to make these requirements as smooth as possible for you and will do all the heavy lifting with reporting. If you have any questions, please let us know in the chat or by email at support@hopoti.com. Thank you for your co-operation!