The IRS requires ShootProof to prepare and mail 1099-K tax documents to studios that had at least $20,000 USD in credit card payments processed AND over 200 individual credit card transactions through Legacy ShootProof Payments or ShootProof Pay. In accordance with IRS guidelines, these forms will be prepared and mailed out by January 31st. This 1099-K form only represents the credit card transactions processed through a specific payment gateway and should not be considered a full accounting of gross income, especially in cases where you have collected funds outside of ShootProof, or card payments from multiple payment gateways. You can learn more about what a 1099-K form is on the IRS website.
With the switch to ShootProof Pay this year, you may be eligible to receive up to two 1099-K's. In order to receive two, you would need to have met the IRS requirement of $20,000 in funds collected and over 200 individual transactions processed in both the Legacy ShootProof Payments and the ShootProof Pay gateways separately during 2021. With these being separate payment gateways, ShootProof must issue separate 1099-K’s for each gateway for only the funds processed through that system. The requirement threshold must be met with each gateway individually in order to receive a 1099-K.
For studios not meeting these IRS reporting minimums, no tax forms are generated or submitted to the IRS by ShootProof. Sales and Invoice Payment reports can be accessed at any time in the Reports tab of your ShootProof account though.