Small Business Taxes

Digital Payment Platforms and Tax Reporting (Form 1099‑K)

Updated 2025-10-28

Understand platform reporting, reconciliation tips, and how to prevent double‑counting when payouts include fees and refunds.

  1. What platforms report
  2. Reconciling 1099‑K to books
  3. Handling fees & refunds
  4. Multiple platforms
  5. Alerts & monitoring

What platforms report

Third‑party networks report gross payments; timing and inclusions vary.

Reconciling 1099‑K to books

Tie gross to sales, subtract refunds/fees/chargebacks, and align to net deposits.

Handling fees & refunds

Record fees as expenses; use contra‑revenue accounts for refunds and chargebacks.

Multiple platforms

Consolidate by channel and maintain schedules by provider.

Alerts & monitoring

Set alerts for unusual dispute rates or payout delays.