US dispensaries: Form 1099-K E-delivery consent

Overview

Practitioners can now consent to electronic delivery (E-delivery) of Form 1099-K. This guide will walk you through the process and the benefits of opting for electronic delivery.

Understanding E-delivery for Form 1099-K

About Form 1099-K

Form 1099-K is a tax form used in the United States to report certain types of payment transactions, primarily those related to electronic and online payment processing. It’s issued by payment settlement entities, such as payment processors (e.g., Stripe) or third-party platforms, to dispensary owners and submitted to the IRS (as well as some US states).

Fullscript is required to provide Stripe with the tax details of our users by January 31st, enabling Stripe to issue 1099-K forms to practitioners whose gross payments exceed $600 in the year. The Form 1099-K is generated using the practitioner’s legal business name, Taxpayer Identification Number (SSN or EIN), and address.

The option for E-delivery

Dispensary owners now have the option to opt for receiving Form 1099-K electronically. This alternative allows you to securely access and download these forms rather than having them delivered through traditional mail services.

How to consent to E-delivery

As tax season approaches, a banner will be enabled for all users who haven’t previously consented to E-delivery. To consent to E-delivery:

1. Select the tax verification banner at the top of the screen.
2. Click on Verify your tax details and follow the modal.
3. After verifying your tax information, select E-delivery, then Next in step 3.

   

4. Read the full disclosure, select I agree, and click Done. The Tax Verification notification should disappear.