Are our 1099-K forms delayed again this year?

[3BBoutique]

Does anyone know if our 1099s are late again? Last year I didn’t get mine until end of Feb and I’m really hoping it’s not the same issue this year where they get extensions. Didn’t even know it was legal to do that! 

[Victor]

Hi @3BBoutique,

Thank you for reaching out. I do not have a timeline that I can share regarding when 1099k forms will be issued for US-based merchants, although you should be notified when they are ready. You will be able to access the form when it is ready in the Payments section of the admin by heading to View payouts > Documents.

[kelleyholding]

They are legally required to be here by 1/31.  It is 1/31 right now.  What is happening?

[3BBoutique]

They aren’t planning on sending it. They filed an extension. Which shouldn’t even be legal. 

[3BBoutique]

Awesome. They did this last year and I didn’t have it until March! This shouldn’t even be legal to withhold 1099s. 

[Krc22]

What can we do if we don’t get them in time? 

[3BBoutique]

Nothing. You have to wait 😑

[Victor]

Hi @3BBoutique, @Krc22, and @kelleyholding,

Thank you all for your feedback. I understand wanting to have received your 1099k's by the end of January but there has been a slight delay in the issuing of these forms on Shopify's end; we do apologize for the inconveniece this has caused. We hope to have the forms issued to eligible merchants in the coming weeks.

Please note that it is possible to access your Shopify Payments sales data within the admin incase you wish to access this information before your 1099k is sent to you. These are the steps:

1. Log into your Shopify admin and go to Finances > Payouts > Transactions

2. Export your transactions by date. Make sure to set your date range to about 10 days either side of 2023, to make sure you don't miss any transactions

3. Open the file and sort the sheet on column H (`Available on`). This is the date when the money actually changed hands from the customer's bank to your processing account and is the date Shopify uses for tax purposes

4. Once you have sorted your spreadsheet, delete any rows with an `Available on` date of either 2022 or 2024.

5. Sort your spreadsheet by column B (`Type`) and remove any rows with a `Type` listed as anything other than `Charge`. This means you will be deleting any rows with a `Type` of Refund, Adjustment, Chargeback, etc. This is done because the 1099-k only reports gross processing which is determined by the value of the charges alone.

6. Check that the spreadsheet only contains transactions with a `Type` listed as `Charge` and an `Available on` date of 2023

7.  The final step is to calculate the sum of column I (`Amount`). The number of rows in the export (minus the heading row) will show you the number of transactions.

I hope this helps in the meantime and we appreciate your patience on this matter.

[Dan_Clausen]

Ya'll need to get it together, you were late last year too. 

[DigitalMapCases]

This is pretty easy (and what I have already done). So why the heck does Shopify need extensions every year? Someone (not you obviously) is dropping the ball here and upsetting Shopify's customers (us merchants) for no good reason.

[marikarivan]

Anybody received their Shopify 1099-K yet?

[Trevor]

@Dan_Clausen @3BBoutique @marikarivan @Krc22 

Businesses are allowed to file for extensions on the delivery date, so while the original due date is January 31st, Shopify has been granted an extension to provide these forms to merchants by the end of February. By default, any merchant eligible for a 1099k form will also be granted this extension. 

It is not your responsibility to file this form, Shopify does this on your behalf, you only need a copy of the form for record purposes. This it outlined on the IRS website: https://www.irs.gov/businesses/understanding-your-form-1099-k

You do not need this form to file your taxes. You can compile the data you need using the available reports in your store. Victor has provided the most accurate information to compile this data, you can also get more information here.  

[kelleyholding]

Hi

I think it's really important that Shopify understand that many businesses are required to file taxes by mid-march, so end of February cuts it very close.  An extension is not something that should be filed based on late filing of another business and usually has implications for businesses or personal taxes, so please don't infer that it's "easy" or "no big deal".  

The time it takes to "compile" this data is also not the responsibility of the business owner and is an extra step in the process.  It is Shopify's responsibility to provide this and you are the only business who provides tax reporting to me that is consistently late. 

[3BBoutique]

Agree 100%!! 

[snorkazork]

I got an email saying to expect it "by February 29, 2024" and "Shopify has obtained an extension from the IRS until the end of February for delivering 1099-K forms for its merchants."   

Very annoying!  I'm generally satisfied with Shopify, but tax time gets emotionally stressful, and I am starting to associate that stress with Shopify.   A bad look for Shopify, I'd say.