Beginning January 1, 2022, the Internal Revenue Service (IRS) implemented new reporting requirements for certain payments received for goods and services made through Third-Party Settlement Organizations (TPSOs), Like BitRail. Previously, we did not need to report transactions to the IRS until a user reached a threshold of $20,000 and 200 transactions in a single calendar year. The new reporting requirements lowered the reporting threshold to $600 in gross payment transactions for goods and services starting with the 2022 calendar year.
- This new threshold change is only for payments received for goods and services transactions.
- This change was introduced in the American Rescue Plan Act of 2021, which amended some sections of the Internal Revenue Code to require Third-Party Settlement Organizations (TPSOs), like BitRail, to report goods and services payment transactions received by payees with $600 or more in annual gross payments on 1099-K forms for calendar year 2022.
Due to this new IRS tax reporting requirement, your BitRail dashboard may display a message "Please provide your SSN..." or similar message.
Enter the required information and click "Update Profile" to save your SSN or EIN number as requested.
IMPORTANT: users with no SSN or EIN on file may lose the ability to receive or withdraw funds.
As of April-04, 2022, BitRail will require a SSN for individual accounts or an EIN for business accounts upon signup for a new account, or login to an existing account.
LEARN MORE:
Will BitRail report my business sales to the IRS?
1099K instructions on the IRS website: Instructions for Form 1099-K
We’re here to help. If you have any questions or concerns regarding this change or your BitRail account, open a support ticket or send an email to our Customer Support.