The IRS requires ProPay to report the payment volume received by U.S. account holders if your payment volume exceeds both of these items in a calendar year:
- $20,000 USD in gross payment volume from sales of goods or services in a single calendar year (cash excluded)
- AND 200 payments for goods or services in the same year
If you cross the IRS thresholds in a given calendar year, HairHoncho will send Form 1099K to you and the IRS for that year early in the following year.
You can access your 1099K from your HairHoncho account by January 31st annually. Only those customers that meet the 1099K eligibility requirements will see the 1099K available for download in their account.
If there are any discrepancies between what is reported by the IRS for your tax identification number and name and what HairHoncho has on file and used to sign up for your ProPay account, you may receive an IRS B-Notice.