1099-Ks, Zelle, Venmo, and the P2P Confusion: What AP Needs to Know in 2025 | Product

With payment methods like Zelle, Venmo, PayPal, and Cash App blurring the lines between business and personal payments, it’s harder than ever to know when a 1099-NEC is required, or whether a 1099-K will be issued instead. And if the 1099-K rules apply, it means you don't need to issue a 1099-NEC. In some cases, no reporting form will be issued at all, and it's all legitimate within the law.

In this timely and actionable webinar, IOFM's "1099 Guy" Jason Dinesen breaks down the rules and reporting thresholds for Form 1099-K, explains when a third-party platform is considered a TPSO, and clarifies when the business must still issue its own 1099-NEC. You’ll also learn how to handle edge cases and misclassified payments before they become audit risks. We'll also look at proposed legislative changes to 1099-K, and the IRS's perspective.

This is must-know content for AP teams who want to get ahead of the curve and avoid 1099 reporting errors in a fast-evolving regulatory environment.

Learning Objectives:

• Define what qualifies as a Third Party Settlement Organization (TPSO) under IRS rules.
• Distinguish between when Form 1099-K is issued by platforms and when a 1099-NEC is required by the business.
• Analyze payment flows through platforms like PayPal, Zelle, Stripe, Cash App, and Venmo for proper tax treatment.
• Apply decision-making frameworks to ambiguous reporting situations involving payment apps.
• Document payment methods and 1099 determinations to maintain compliance and audit readiness.