As of 2011, the Internal Revenue Service (IRS) requires all businesses that process payments to file a Form 1099-K for anyone who is eligible to work in the United States and earns $20,000.00 or more per year (combined across all accounts).
If you earn less than $20,000.00 from Phrendly in a calendar year (starting at midnight UTC, January 01 through 11:59PM UTC, December 31), you will not receive a Form 1099-K and we will not report your earnings to the IRS for that tax year.
If you earn $20,000.00 or more from Phrendly in a calendar year (starting at midnight UTC, January 01 through 11:59PM UTC, December 31), we will send you a Form 1099-K and we'll report your gross earnings to the IRS. Your Form 1099-K from Phrendly, LLC will include a monthly summary of all earnings for the tax year and will be mailed to your payment address by January 31 of the following year.
In order to prepare your form, we need to verify that your Social Security Number (SSN) or Employer Identification Number (EIN) matches your "Payable to" name. This verification process can take up to 5 business days. Edit your Payee Information if you need to make changes or add information. If your Payee Information cannot be verified before you are paid $19,000.00 within the tax year, your Phrendly payments may be suspended. Your earnings will continue to accumulate and will remain safe in your Phrendly balance until your Payee Information can be verified.
Although we are always willing to help you with any questions you may have, we are unable to provide tax-related advice or filing information. We strongly suggest consulting a tax advisor if you have questions about how this regulation may affect you.