Wix does report to the IRS. In the United States, it is required by law for all third-party payment providers, including Wix Payments, to report merchant sales activity to the IRS and relevant state authorities. This reporting is done through the use of a 1099-K form.
The 1099-K form is used to report income received by merchants through payment card transactions, such as credit card and debit card sales. It is important for Wix to report this information accurately and promptly to ensure compliance with tax regulations.
As a merchant using Wix Payments, you may receive a 1099-K form from Wix if your sales meet certain thresholds. The thresholds for receiving a 1099-K form are based on the number of transactions and the total gross sales volume in a calendar year. For example, if you have more than 200 transactions and your total gross sales exceed $20,000 in a calendar year, you will likely receive a 1099-K form from Wix.
The information reported on the 1099-K form includes the total gross sales volume processed through Wix Payments, as well as any fees or adjustments made during the reporting period. This information is then provided to the IRS and state authorities, who use it to ensure accurate reporting of income and tax liabilities.
It is important to note that the 1099-K form reports the gross sales volume, which is the total dollar amount of sales before any deductions or expenses are taken into account. This means that the reported amount may be higher than the actual income you received as a merchant, as it does not factor in refunds, chargebacks, or other adjustments.
In addition to the 1099-K form, it is also recommended to keep your own records of your sales and expenses for tax purposes. This will help you accurately report your income and deductions when filing your tax returns.
Wix Payments follows the legal requirement to report merchant sales activity to the IRS and relevant state authorities through the use of the 1099-K form. It is important for merchants to be aware of their reporting obligations and maintain accurate records to ensure compliance with tax regulations.