Posts Tagged ‘Form 1099-K’

“Crowdfunding” – Are The Funds Taxable?? Do You Need To Keep Business Records??

Monday, March 21st, 2022

The exclusive purpose for the information which is provided from this website is to disseminate information, and not to provide tax advice. 

“Crowdfunding” is one of several Internet-based activities in which parties can receive funds from entities and individuals whom they have never met, or do not know.  There are websites that specialize in these activities.  Suppose you received a 1099-K  [“Payment Card and Third Party Network Transactions”]  What do you need to do?  What actions are you required to do?

Have you been keeping accurate business records from Day One?  Will your business records meet or exceed the IRS standards?  Recordkeeping | Internal Revenue Service (  Were the funds considered to be “gifts” or did you provide material, products, or services in exchange for the “gifts” or “donations”??