At Veem, we want to make sure you are prepared for tax season and that you have everything you need from Veem to file your return.
New Update: As per the IRS's newest release here, Veem will be reporting 1099K for clients who received 200 payments and the total amount is over $20,000 USD for the 2022 tax year.
Clients located outside the US can always download and use the transaction report showing their transaction history to assist with filing taxes.
What is a 1099-K form?
The IRS requires Payment Settlement Entities, such as Veem, to report the payment volume received by U.S. account holders. A 1099-K form is the information return that is given to the IRS and qualifying customers. Organizations that facilitate these payments, like debit/credit card companies, Square, PayPal, Stripe, Venmo, Etsy, Payoneer, Upwork, and many others, are required by law to file them with the IRS and send copies to the payment recipient.
Do I qualify for a 1099-K form?
To qualify for this, you (the client) need to have received 200 payments and the total amount is over $20,000 USD for the 2022 tax year. Veem is required to provide a 1099-K to the IRS for you. Veem may also be required to report processing activity to meet state and other reporting requirements in the District of Columbia, Illinois, Maryland, Massachusetts, Missouri, Vermont, and Virginia.
How do I download my 1099-K form?
If you qualify for a 1099-K form you'll see a link to download your 1099-K form on the Veem customer portal. Forms will be available by January 31st, 2021.
What information is on my 1099-K?
The amount and transaction count on each form are calculated based on your gross sales for the transaction date(s) of those sales. This includes revenue from payments that were refunded. Gross sales include taxes collected on a sale if they were included in the payment process. This means that the gross amount on your Form 1099-K may not be the final reportable amount on your tax return. You should consult your tax advisor to determine how best to use the information on your Form 1099-K when filing your personal and/or business income tax return.
The transaction date is the date in our system that the transaction took place, which is based on a standardized time known as Eastern Standard Time (EST). Your online Veem Dashboard shows your transactions in your local time, so there may be small differences in the reporting dates. For any additional tax information, please reach out to a tax professional or visit the IRS Form 1099-K Payment Card and Third Party Network Transactions site.
When will my 1099-K form be available?
Forms will be available to download from your Veem Portal by January 31st, 2023.
What to do if I am a non-USA resident but I hold a bank account in the USA?
IRS regulations require non-U.S. taxpayers to provide Form W-8BEN to Veem in order to be exempt from U.S. tax reporting requirements. An IRS Form W-8BEN expires on December 31 following three years after a seller provides it to Veem. https://www.irs.gov/forms-pubs/about-form-w-8-ben
How do I update my account so it’s reported under my business name and EIN?
To ensure accurate tax reporting for you or your business, and to prevent any possible IRS withholding, it is very important that you update your Veem account to match IRS records. You can review and update your taxpayer information (legal name and EIN) from your online Veem Dashboard. Click here to learn more about how to update your information.
NOTE: Edit your information for the current fiscal year and click Save. Note, Veem is unable to make any changes to your 1099-K after March 31.
What if I have multiple Veem accounts?
Our reporting threshold is the aggregate gross sales volume processed on all accounts that use the same EIN or SSN. If you have multiple accounts that use the same EIN, we will aggregate volume for all accounts and issue one 1099-K if you meet the thresholds.
What’s a TIN?
A TIN is an acronym for “Taxpayer Identification Number.” A TIN is a number used to file taxes with the IRS. Your TIN could be either an Employer Identification Number (EIN) or Social Security Number (SSN). If you need to verify what’s on file with the IRS, you can refer to your SS4 EIN Assignment Letter or contact the IRS at 800-829-4933 and ask for a letter 147C. You can read more about TINs on the IRS website. You should consult your tax advisor regarding the appropriate TIN to use for your tax purposes.
SSN vs. EIN. While all Veem customers have to provide a valid Social Security Number (SSN) during sign-up, we also encourage providing your EIN during sign-up. By providing an EIN, your account will be identified as a business entity and all tax reporting will be associated with your business name and EIN. You can read more about TINs on the IRS website.
How do I get an EIN?
An Employer Identification Number (EIN) is a federal tax identification number used by the IRS to identify your business for tax purposes. You can apply for an EIN directly from the IRS website.
Does Veem Verify my TIN?
Veem must make sure our files reflect the correct Taxpayer Identification Number and Tax Filing Name for your business. Both pieces of information must match what the IRS has on file for your business. Veem is required to validate your TIN by checking with the IRS website. If your details can't be verified, you'll need to provide a Form W-9. If this is the case, we'll let you know what you need to do. Veem will suspend your account pending the completion of the verification process.
What is a B Notice?
When your taxpayer information (TIN/name combination) does not match the IRS records, Veem is required to issue a notice to your account. This notice is called a “B Notice.” You’ll receive a notification letter and email from our Tax team with the required due date to update your information. If you do not submit the required documentation by the due date, your Veem account will be deactivated.
I Have Used Veem for Years and Never Received a 1099-K before. Why am I getting this now? For a number of years, the IRS has required payment settlement entities (PSE) to report earnings and issue 1099-Ks for activity that involved 200 or more transactions totaling at least $20,0000. For the 2022 tax year, the threshold remains in effect.
If Veem holds funds pending receipt of my TIN, Is Veem keeping my money?
No, Veem is not keeping your money. Payments placed on hold are in your account, but they're unavailable to you until you confirm your tax info. By confirming your tax info, you and Veem are acting in compliance with the new IRS requirements.
I received a 1099-K But Do Not Have a Veem Account?
If you received a 1099-K and didn't open a Veem account or haven't processed transactions, you may be the victim of identity theft. If you believe you have received a 1099-K in error and may be the victim of identity theft, please send us an email at email@example.com. We will reply to your email with detailed instructions.
Will Veem help me with my tax return?
While we seek to help you understand the 6050W requirements and your Form 1099-K, Veem isn't qualified to give you specific tax guidance. For tax help, you should contact a tax professional.
Have more questions?
Please feel free to reach out to your Account Manager, contact Customer Service here or visit our Help Center here to find answers to other questions.