Form 1099-K Vendor Reporting Policy

Statutory Basis

Upmos is a “third-party settlement organization” (TPSO) within the meaning of Internal Revenue Code § 6050W and is required to report payments to participating payees on IRS Form 1099-K, Payment Card and Third-Party Network Transactions. This Policy describes when 1099-K is issued, how to register your taxpayer information, and how to address common reporting issues.

Federal Reporting Threshold

The IRS has phased in the $600 statutory threshold under a multi-year transitional relief schedule (IRS Notice 2024-85; IRC §6050W):

Upmos issues a Form 1099-K for each calendar year in which your gross payments exceed the threshold in effect for that year, regardless of the number of transactions.

Some states impose lower thresholds (e.g., Massachusetts, Vermont, Virginia, Maryland, Illinois at $600; New Jersey at $1,000; District of Columbia at $600). Upmos issues a 1099-K to any vendor whose state of residence has a lower reporting threshold, regardless of whether the federal threshold has been met.

What Counts Toward the Threshold

The “gross amount” reported on the 1099-K is the gross dollar amount of all reportable payment transactions, not reduced by any adjustments, refunds, fees, or sales tax. This means:

• Refunds and chargebacks are NOT subtracted on the 1099-K (they appear elsewhere in your books);
• Sales tax collected and remitted by Upmos as a marketplace facilitator is NOT included;
• Upmos fees (referral fees, payment processing, advertising spend) are NOT subtracted;
• Shipping income collected from buyers IS included.

TIN Collection — Form W-9 / W-8

Before issuing your first payout (or in connection with crossing the 1099-K threshold, whichever is earlier), Upmos collects from each vendor:

• For U.S. persons — a completed and signed IRS Form W-9 establishing the vendor’s legal name and Taxpayer Identification Number (SSN, EIN, or ITIN);
• For non-U.S. persons — a completed and signed IRS Form W-8BEN (individuals) or W-8BEN-E (entities) establishing foreign status and any applicable treaty benefits.

The Form W-9 / W-8 must be submitted electronically via the secure tax-information page in your vendor dashboard. Failure to provide a valid Form W-9 may result in 24% backup withholding under IRC § 3406.

TIN Matching

Upmos validates each submitted TIN against the IRS TIN Matching system before issuing payouts. A mismatch between the legal name and TIN on file may result in:

• A request for a corrected Form W-9;
• A temporary hold on payouts until the discrepancy is resolved;
• 24% backup withholding on payouts pending TIN correction.

Backup Withholding

Backup withholding at the statutory rate of 24% applies when:

1. A vendor fails to furnish a valid TIN;
2. The IRS issues a “B Notice” or “C Notice” identifying the vendor’s name/TIN as incorrect;
3. The vendor fails to certify on the W-9 that they are not subject to backup withholding;
4. The IRS instructs Upmos to begin withholding.

Withheld amounts are remitted to the IRS and credited on the vendor’s Form 1099-K. Backup withholding is generally refundable when the vendor files their personal or corporate return.

B-Notice Cure Window (IRS Publication 1281). When the IRS issues a first B-Notice identifying a name/TIN mismatch, Upmos will notify you in writing within 15 business days. You then have 30 business days to furnish a new, signed Form W-9 or other IRS-specified documentation. If you fail to respond within that window, Upmos will begin backup withholding at 24% on all subsequent payouts. A second B-Notice within three years requires a Social Security Administration name/TIN letter or an IRS TIN letter to cure; self-certification on a new W-9 is insufficient after a second B-Notice.

Issuance Timeline

Form 1099-K for calendar year 2026 will be made available to qualifying vendors on or before January 31, 2027, in their vendor dashboard. Vendors may elect electronic delivery (default) or paper delivery via postal mail. A copy is filed with the IRS by March 31, 2027 (electronic) or February 28 (paper).

Corrected Forms

If you believe a Form 1099-K issued to you contains an error (incorrect TIN, incorrect amount, incorrect filer information), submit a written correction request via the dashboard or by email to tax@upmos.com. Requests submitted within 30 days of issuance receive priority handling; Upmos will investigate all valid correction requests received before the applicable IRS correction filing deadline (currently March 31 for electronically filed returns). We will, where warranted, issue a corrected Form 1099-K (marked CORRECTED) to you and the IRS.

State Equivalents

Several states require Upmos to file a state-equivalent 1099-K or share federal 1099-K data at thresholds equal to or lower than the federal floor. As of filing year 2026, these include:

California follows the federal 1099-K threshold via FTB automatic conformity; no independent TPSO lower threshold applies as of the date of this policy. Upmos files all required state copies on the same schedule as the federal Form 1099-K, or as otherwise required by state law.

Recordkeeping

Upmos retains Forms W-9, W-8, transaction-level support, and copies of all 1099-Ks issued for not less than seven (7) years from the due date of the return. This exceeds the four-year minimum under Treasury Regulation § 31.6001-1 and is designed to accommodate the six-year extended statute of limitations that applies when gross income is substantially understated (IRC § 6501(e)).

Vendor Resources

For questions about Form 1099-K, see:

• IRS Understanding Your Form 1099-K — irs.gov/businesses/understanding-your-form-1099-k;
• IRS Form W-9 Instructions — irs.gov/forms-pubs/about-form-w-9;
• Upmos Help Center — /vendor-help/tax/.

Contact

Email: tax@upmos.com

IRS: 1-800-829-1040 · irs.gov

How Can You Contact Us About This Policy?

If you have any further questions or comments or wish to report any problematic Content or Contribution, you may contact us by:

General Contact

• Phone: 1(855)637-2433 (Mon–Fri, 7 AM–8 PM CT)
• General Support: support@upmos.com
• Report Issue: upmos.com/report
• Send Feedback: upmos.com/feedback

Department Directory

Mailing Address

Upmos Inc.
9896 Bissonnet St
Houston, TX 77036
United States