Understanding Your Tax Documents

This article explains how 1099-K tax forms are handled for practices using Akute Pay, including:

  • Who receives a 1099-K
  • When forms are delivered
  • What to do if you do not receive your form

What is a 1099-K?

The IRS introduced the 1099-K to ensure merchants correctly report sales for tax purposes. It requires payment processors to report the transactions they process on behalf of merchants. These regulations apply to both nonprofit and for-profit organizations. For more information on IRS requirements, please refer to the IRS site.

What Happens in Akute Pay

The IRS requires payment processors to file Form 1099-K for merchants who exceed annual reporting thresholds. For recent tax year(s), the federal minimum threshold was $20,000 in gross payments and 200 transactions. Some states have additional filing requirements based on local thresholds.

If your practice exceeds the applicable thresholds, Akute will automatically file a 1099-K on your behalf - no action is required from you.

The 1099-K reports the gross amount of payments your practice collected via card and ACH, along with the total number of transactions. Gross payments include all sales before refunds, fees, or other adjustments. Akute reports transaction amounts based on the transaction date within the calendar year, not the settlement or payout date.

What You Need to Do

No action is required to trigger filing. Monitor your email in early January for an electronic delivery notice - this will be sent to the owner’s email listed on the merchant application.

For questions about how to report the amounts on your 1099-K, consult a tax professional or the IRS directly.

Delivery Timeline

  • Early January:  An email will be sent to the owner email listed on your merchant application with instructions to access your electronic 1099-K.
  • By January 31: If you do not access the electronic copy, you will be mailed a paper copy to the address listed in your merchant application.
  • By February 10: If you have not received your form, contact Akute (support@akutehealth.com).

You may receive multiple 1099-K forms if you used more than one payment processor during the year - this is normal and expected.

When to Contact Akute

Contact Akute support if:

  • You have not received your 1099-K by February 10
  • You need another copy of your 1099-K
  • Your mailed form was returned due to an outdated address
  • You believe your 1099-K contains incorrect information

For questions about how to file your taxes or how the 1099-K impacts your return, consult a tax professional or the IRS directly.