Overview

Form 1099-K is an IRS information return used to report payments processed through payment cards and third-party payment networks. This form must be filed with the IRS, and a copy must also be provided to the corresponding payee.

Under the One Big Beautiful Bill Act (OBBBA), Form 1099-K has been updated to include several new fields to support enhanced reporting requirements and improve tax compliance.

1099-K automation with TaxBandits API

The TaxBandits API enables you to automate 1099-K filing directly from your existing systems. Depending on how your platform manages payment data, you can choose the approach that fits your workflow.

Automate end-to-end 1099-K cycle

Collect W-9/W-8 forms from recipients, validate their TINs against the IRS database, record transactions as payments occur, then generate and file 1099-K forms at the year-end.

Best for: Payment platforms and online marketplaces that onboard sellers or service providers and need to collect and validate payee tax details before recording payment transactions and filing.

Record transactions, generate 1099-K at year-end

If you already have recipient data on file, record payments as transactions throughout the year using the 1099Transactions endpoints. At the year-end, the API aggregates them per recipient and generates 1099-K records automatically.

Best for: Payment apps, gig economy platforms, and online marketplaces where payees receive multiple payments throughout the year and the platform needs to track both gross payment totals and monthly breakdowns per payee.

Create and file 1099-K directly

If you already have recipient data and annual payment totals in your system, use the API endpoints to create and transmit 1099-K forms directly.

Best for: Payment processors, acquirer networks, and fintech platforms that already maintain transaction records per payee and need a reliable, automated way to prepare and file Form 1099-K.

Learn more about workflows

Supported tax years

TaxBandits API supports e-filing of Form 1099-K for the following tax years:

Tax Year	API Version
2026	v2.0
2025	v2.0
2024	v2.0

Services available

The TaxBandits API supports the following services for Form 1099-K:

• Federal & State Filing — File 1099-K returns with the IRS and the required state agencies.
• State-Only Filing — File 1099-K only with the state agencies when the federal return has already been submitted.
• Postal Mailing — TaxBandits prints and mails the recipient copy on your behalf.
• Online Access — Share a digital copy of the 1099-K with recipients through a secure, branded online portal. Recipients are notified via email and can view, download, and consent to paperless delivery.
• Corrections — File corrections for 1099-K forms that are already accepted by the IRS (even if original returns filed elsewhere).

1099-K endpoints

All endpoints require a Bearer token obtained through the OAuth 2.0 authentication flow. Include this token in the Authorization header of every request. Learn more about OAuth 2.0.

• Create — Create one or more 1099-K records in a single submission. Federal e-file, state filing, and recipient distribution can all be requested in the same call.
• Update — Modify an existing 1099-K submission before it has been transmitted to the IRS.
• ValidateForm — Validate 1099-K field-level specifications against the IRS business rules before creating the form.
• Get — Retrieve payer, recipient, and form data for a specific 1099-K submission by SubmissionId.
• GenerateFromTxns — Generate 1099-K records from transaction data posted via Form1099Transactions.
• Approve — Approve transaction-generated 1099-K records before transmission.

1099 utility endpoints

The following endpoints are shared across all 1099 form types.

• List — List all 1099-K records for a submission or payer.
• Status — Use this endpoint to retrieve the status of the Forms 1099-K submitted to the IRS and/or states.
• Transmit — Transmit the created return to the IRS and State.
• StatusLog — Retrieved the status change of the transmitted return.
• RequestDraftPdfUrl — Returns a draft PDF URL for review. These forms are not for filing and will have a watermark "For Review only" on them.
• RequestPdfURLs — Retrieve final PDF URLs for one or more recipients after transmission.
• Delete — Delete the returns created before transmitting.

As an alternative to the Status endpoint, you can configure webhooks to receive automated status updates. Learn more

Tax Year 2026 — What's New

To support the new reporting requirements introduced by the One Big Beautiful Bill Act (OBBBA), the Form 1099-K payload for TY 2026 introduces two new optional fields inside the K FormData object. These fields are accepted only when SubmissionManifest.TaxYear is "2026":

• CashTips — Cash Tips paid to the Recipient (supports No-Tax-on-Tips reporting).
• TTOC1 — Treasury Tipped Occupation Code #1 (required when CashTips is reported).
• TTOC2 — Treasury Tipped Occupation Code #2 (optional secondary code).

If you send the TY 2026 fields (CashTips, TTOC1, TTOC2) with TaxYear 2025 or 2024 they will be ignored by the API. Refer to the Treasury Tipped Occupation Codes dictionary for the list of valid TTOC values.