If a seller meets the threshold requirements for tax reporting in a calendar year, MX Locker will generate a Form 1099-K for the seller, file it with relevant taxing authorities, and provide the seller access to it (or deliver copies of it). These threshold requirements relate to reportable payment transactions under Internal Revenue Code 6050W.
1099-K reportable payment transactions include the following details for completed transactions:
- item price
- buyer-paid shipping
- associated sales tax
- merchant fees
A transaction completes on the date when a seller rates the order – or when MX Locker auto-rates the order after a prescribed period of time. This also marks the point when net sales proceeds are added to the seller’s MX Locker balance. The total gross amount does not include any adjustments for credits, cash equivalents, discount amounts, fees, refunded amounts, or any other amounts after completion.
Some states have their own tax reporting thresholds. These could be different from the federal threshold mandated by the Internal Revenue Service. Whenever a seller meets the federal threshold, MX Locker will also file copies of Form 1099-K with state taxing authorities that have 1099-K filing requirements. Consult your tax advisor to determine any thresholds that may exist and apply to you in your state.
When you submit an electronic substitute Form W-9 through your MX Locker account’s Tax Center, you have the option to have 1099-Ks delivered electronically or by physical mail. The user has the ability to change their 1099-K delivery method preference for the reportable year, but this change must be made by January 7 of the year after meeting the Federal 1099-K tax reporting threshold. MX Locker must also process and accept this change by the same January 7 date. After that point, your changes, once accepted by MX Locker, will be reflected in the following calendar year. It is recommended to make any changes well in advance of January 7. (More details are included in the Disclosure Information section below.)
All Form 1099-Ks will utilize the unique MX Locker user account number that is generated – and permanently connected – to your account when you create it. All affiliated and attributable tax reporting information will be associated and reported exclusively at this account level.
If you discover an issue with your reported 1099-K, contact MX Locker via the Help Center
. Provide details about the issue, so that we can work to correct your Form 1099-K.
If you have already submitted a Tax Identification Number for W-9/CIP purposes, the information should not be changed. (This is because MX Locker accounts are non-transferrable.) A change of Tax Identification Number can occur when you would like to change your account from an individual (using an SSN) to a business (using an EIN). In this case, the individual must be the owner of the business and be authorized to utilize the EIN. MX Locker may review the EIN and business information for confirmation. Likewise, you may switch from an EIN to an SSN if the business has been dissolved and you wish to continue selling under their own SSN. These are the only cases where the information can be changed.
Users cannot transfer account ownership to another individual.
MX Locker recommends you monitor unadjusted gross sales and transactions over the course of the calendar year. This information is in your Sales Report, available through the Seller Dashboard on MX Locker.com.
All tax documentation and statements provided by MX Locker do not constitute, nor should be construed as, legal or tax advice. Please consult your tax advisor, accountant, or the Internal Revenue Service for assistance in utilizing your Form 1099-K when filing tax returns.
MX Locker may hold, remit, and report user funds if it receives a government notice or as part of a government process.
Physical delivery of Form 1099-K
If consent for electronic delivery of information return(s) is not elected, your Form 1099-K will be delivered via mail. They will be sent to the address you provided in your Form W-9 submission.
Scope and duration of electronic consent
After you provide consent to receive your Form 1099-K electronically, that consent will continue until one of the following events:
(1) You resubmit a Form W-9 through your account’s Tax Center and choose to have your 1099-K physically delivered
(2) You submit a ticket through MX Locker’s Help Center
requesting help withdrawing consent
(3) You submit a written request, either by email or physical mail, to MX Locker’s Tax Department to withdraw electronic delivery consent
MX Locker strongly recommends using the first method above to change your consent.
Details are provided in the following sections.
Using your account’s Tax Center to request paper Form 1099-K after providing electronic consent
Withdrawal of consent to electronic delivery can be completed by following these steps:
(1) Choose to “Edit” your Form W-9 – located in your account’s Tax Center
(2) Complete your taxpayer information and select the option “I prefer to receive the documents by mail”
(3) Submit the completed Form W-9
When the “I prefer to receive the documents by mail” option is selected and the electronic substitute Form W-9 is resubmitted, MX Locker will treat this as a withdrawal of consent to electronic delivery.
While there are other options available to withdraw consent, additional administrative steps can make these other methods take longer.
You have until January 7 of the next year to change your delivery consent (electronic or mail) for the preceding calendar year’s tax reporting period. However, your request to change delivery consent must be processed and accepted on or before January 7 of the next year. After that point, your changed consent will apply to the next year’s tax reporting.
Withdrawal of consent in writing
MX Locker strongly recommends that withdrawal of consent for electronic delivery of your information return(s) be completed by resubmitting a W-9 through your account’s Tax Center. However, you can receive assistance in withdrawing consent through these methods as well:
- Submit a ticket through MX Locker’s Help Center
- Send an email to email@example.com
- Mail a withdrawal of consent letter to MX Locker’s Tax Department (see address below)
Whichever method you use, include the following information:
- MX Locker account username
- User ID
- Email associated with the MX Locker account
- Full legal name
- A statement informing MX Locker that you want to withdraw consent to receive Form 1099-K electronically
If you withdraw consent through a mailed letter, address it to:
MX Locker, Inc.
Attn: Compliance Electronic Communications Delivery
P.O. Box 60178
Palo Alto, CA 94306
Requests to withdraw consent submitted in writing have administrative processing steps that can take longer compared to using the electronic substitute Form W-9 in your account’s Tax Center.
Once the request has been processed, a notification email will be sent to the MX Locker user’s account email address. This email will confirm the withdrawal request has been processed and provide the date the withdrawal of consent took effect.
A user has until January 7 of the next year to change your delivery consent (electronic or mail) for a calendar year’s tax reporting. However, your request to change delivery consent must be processed and accepted by MX Locker on or before January 7 of the next year. After that point, your changed consent will apply to the next year’s tax reporting.
Given the manual processing of email and mail requests to remove electronic consent, MX Locker strongly recommends that users submit such requests promptly to allow for time for the adjustment to be made for the tax reporting period in which you met 1099-K filing requirements. take effect before the close of the delivery consent period.
Withdrawal of consent after a Form 1099-K has been delivered
If a 1099-K has already been delivered to you electronically, a request to withdraw consent will take effect on a prospective basis with 1099-Ks for future calendar years.
The effective date for the withdrawal of consent will vary depending on the request method. Once the request has been processed, a notification email will be sent to the MX Locker user’s account email address. This email will confirm the withdrawal request has been processed and provide the date the withdrawal of consent took effect.
Withdrawal of consent can only take effect after consent has been provided.
Notice of Termination of Electronic Delivery
MX Locker will continue to maintain the option to provide Forms 1099-K electronically to those users who have consented, barring a change in MX Locker corporate policy or a change in United States Federal or State Statutes and Regulations that otherwise prohibit or restrict electronic delivery.
Hardware and software requirements to access, print, and retain the electronic Form 1099-K
Form 1099-Ks that are delivered electronically will be in PDF format. These PDFs can be opened in any browser on PC/Mac or smartphone. MX Locker recommends that users use Adobe Acrobat Reader, which can be downloaded for free of charge.
PC minimum requirements:
Windows7/Windows10 with Intel® or AMD processor; 1.5GHz or faster processor with 2GB of RAM, 380MB of hard-disk space.
Mac minimum requirements:
macOS v10.14, macOS v10.15. or macOSv11; Intel processor, 2GB of RAM, 380 MB of available hard-disk space.
Google Chrome, Microsoft Edge with Adobe Acrobat plug-in, Internet Explorer 11, FireFox, or Safari 10.0 or 11.0(browser plug-in for Safari supported on 64-bit Intel® processor only)
Any issued Form 1099-K made available on the MX Locker platform will remain accessible in your MX Locker account’s Tax Center.
Hardware and software requirements to access, print, and retain the electronic Form 1099-K
For more information on updating your contact information, please see our Electronic Communication Policy