WePay Request [Your Tax Information Needs An Update]

---October 2022, WePay is preparing for the IRS Initiative where WePay will issue 1099s for all merchant accounts for the 2022 calendar year.---

Some WePay Merchant Accounts were set up with a business or legal name that does not match the business name on the EIN Determination Letter (aka the CP575).

In the case of a mismatch, WePay requests a copy of the EIN determination letter (the CP575), or a signed W-9 so that WePay can correct the Merchant Business Name and issue a valid 1099-K at the end of the year.

To verify your EIN and business name, look for your copy of the CP575. When you do not have a copy of the CP575, reach out to your chartering parent group.

Review the EIN Tax ID listed in your groupable|m2 Info/Officers screen.

Double-check the known EIN against the IRS tax-exempt organization search database found here: https://apps.irs.gov/app/eos/

Then send a signed and saved W-9 or a copy of the CP575 to WePay at the email address listed below, and cc [e-mail]. 

 

IRS Mismatch Emails

 

Here's What Changed and Why: The American Rescue Plan Act of 2021 decreased the reporting threshold for Form 1099-K from $20,000 in aggregate payments and 200 transactions to $600 in aggregate payments, with no minimum transaction requirement. This became effective in 2022. 

 

What WePay is doing: WePay is conducting a weekly audit on all merchants to make sure that all of the processing merchants have the correct EIN and Business Name on file for the 1099-Ks. Because so many merchants may have had a slightly different name on file than the IRS has, there are quite a few merchants across all platforms that are receiving a "mismatch" email to remedy this issue. 

 

What Merchants need to do: A "mismatch" email from WePay means that either the EIN submitted or the Legal Business Name submitted does not match the information that the IRS has on file, meaning that their WePay account will need to be updated. NOTE: If the EIN was correct and the business name was wrong (likely the case in these issues), the WePay team will update the merchant account once they receive theCP-575 form back from the merchant. 

 

Please have your effected merchants send back a CP-575 form to the WePay team that sent the initial email, and they will handle the updates. If for some reason the EIN itself was incorrectly inputted, this will require a KYC reset so we will continue to monitor that KYC verification report. 

hen you have received an email from WePay stating the following:

ACTION REQUESTED

Your Tax Information Needs An Update

Avoid disruption to your business and potential backup withholding of federal and state taxes by sending us the tax forms needed for your accounts below:

Account ending in

Account name

xxxx

What and where to send your information.

Please send us either:

● Form CP 575 (EIN Assignment Letter) that was provided to you when you registered your business

Or

● New W-9 tax form for your business, which should be complete, signed and saved as a non-editable PDF.

Send your documentation to us as soon as possible via secure email at:

[e-mail]

If needed, we will contact you to clarify any questions we may have about the document.

Here’s why the form is needed.

Data Mismatch: In an effort to ensure we have accurate information on file for 1099-K reporting, the information you provided during your account setup must match the data the IRS has on file. The IRS considers a name/TIN combination incorrect if either the name or number shown on the account does not match a name and number combination in the IRS or Social Security Administration records. You may find a current version of the form at irs.gov.

Internal Revenue Service (IRS) Rule Changes: The IRS has lowered the reporting threshold for Form 1099-K effective January 1. WePay is required to report payments for goods and services over $600 per year, regardless of the number of transactions. This means your business may be receiving a Form 1099-K from us for the first time.

How you can find answers.

If you have additional questions, please check out our Support Team page.

Please note that this notice does not constitute legal and/or tax advice. If you have specific questions about tax forms, we recommend that you consult with your own tax advisor.

We appreciate your prompt attention.

If you're concerned about using the links in this email, copy and paste these URLs directly into your browser to navigate to the resources:

W-9

https://www.irs.gov/pub/irs-pdf/fw9.pdf

[e-mail]

mailto:[e-mail]

please reach out to our Support Team