US persons who have earned over $20,000 and had 200+ transactions
The US Internal Revenue Service (IRS) requires US companies that process payments, including Fons, to report gross earnings for all US users who earn over $20,000 and have 200+ transactions in the calendar year. If you exceed both IRS thresholds in a calendar year, Stripe will issue you a Form 1099-K.
You will be able to access those forms within Fons, Reporting->tax forms tab.
Reasons why your Fons reports may not add up to your Stripe Issued 1099k form
Stripe issues the 1099k using cash basis accounting (when the money hits your bank), and Fons reports using an accrual method.(when the charges occur) For example, you can have charges in december of 2021 that Fons doesn't count in your 2022 reports but Stripe does because the money hit your account in January.
Does that mean that the "payouts" for each month on my Fons account should then match up with the monthly amounts on my 1099-k? ie. If the 1099 - K says I made $1000 in January 2022, should the "payouts" for January on my Fons account also be $1000? No because Stripe reports gross and payouts are net. gross = payout + fees and Net = payout-fees
Stripe does not subtract refunds from the total on the 1099k. Add in "refunds" along with "fees".
Please talk to your tax professional if you have any questions.