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

For payments in calendar year 2026 and after, a Form 1099-K is issued for any participating payee with more than $600 in gross payments from the Upmos marketplace, in any number of transactions. (Prior years had higher thresholds; the $600 threshold reflects current IRS guidance after multiple delays.)

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.

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 within 30 days of the issuance. We will investigate and, where warranted, issue a corrected Form 1099-K (marked CORRECTED) to you and the IRS.

State Equivalents

Some states require independent state 1099 reporting (e.g., California Form 540-X uses federal 1099-K data directly; New Jersey requires Form 1099-K from TPSOs at $1,000). Upmos files all state-required copies on the same schedule as the federal Form 1099-K.

Recordkeeping

Upmos retains Forms W-9, W-8, transaction-level support, and copies of all 1099-Ks issued for not less than four (4) years from the due date of the return, consistent with Treasury Regulation § 31.6001-1.

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, 9 AM–5 PM CST)
• 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