How can I get a split 1099-K?

[PlushMedia]

The title of this thread has been edited by a Square Moderator from the original: "Splitting a 1099K like Stripe allows"

Ok, so this seems absolutely crazy. I'm hoping there's an update.

Like many others I could find on the internet (mostly here/Reddit), I used the same Square account for one business that closed, and then a new business I started. Square generated one 1099K for the entire year, and unlike Stripe, refuses to break them up into two 1099Ks even though there is a clear break between the two, and we have the simplest possible account (no locations/products, just transfers from our third-party sales platform). 

There was absolutely no indicator this would be the case when I changed the name of the business and bank accounts, which seems to be illegal given that Square itself claims (in the 1099K section) that "The IRS requires Square to verify that funds were transferred into a bank account registered to your business." Which they did not. They transferred money into a bank account NOT verified to be owned by the business the 1099K is assigned to. It is owned by a new business. 

They seem to be misleading people with similar stories into receiving erroneous 1099Ks, and lying to the IRS since they refuse to do anything once supplied with correct information to provide the IRS. 

Am I missing something? This seems so incredibly ludicrous and anti-business/customer. They know they are intentionally putting us in a position to be audited, and apparently refuse to do anything about it. I get that the 1099K generation is automated, but as a coder, this isn't even tough to retweak AT ALL. @Drroftarcdt @fenderwai 

- Matt

[_Violet · Accepted solution]

Hello @PlushMedia 👋Thank you for your post. I hear your frustration, and I'd like to provide some additional context on our 1099-K process.

Square generates one 1099-K, per Square account, for the entire year, based on the account's activity. This is an automated process designed to meet IRS reporting requirements. When changes such as business name or linked bank accounts are made, they do not affect the 1099-K generation process, if those changes occur within the same calendar year.

Regarding the verification of your bank account, Square ensures that funds are transferred into a verified bank account, which is linked to your Square account. However, changes to your business name and associated bank account details will not trigger a separate 1099-K. I acknowledge that this may pose challenges for your accounting and reporting, especially for multiple businesses under a single Square account. Because the system does not support splitting 1099-K forms, it's recommended that you consult with your tax advisor on how to report the information correctly on your tax return.

I apologize for any inconveniences and appreciate your understanding.