Tax/1099 Information

Below is the answer our attorneys suggest we provide to this question, and therefore should be your source for the official answer. Because we know how tricky it can be to understand what attorneys say, we've also made an attempt to translate the answer into human-speak.

Basically, because neither EasyShift nor Quri, Inc. are the entity who pays you for Shifts, but rather PayPal, they would be the entity responsible for issuing you a Form 1099. Additionally, third party networks like PayPal are only obligated to issue 1099s to people who have received more than $20,000 from them in that calendar year.

And finally, per our attorneys, you are still responsible to include income made from third party networks like PayPal in your gross income on your personal tax return.

Under regulations promulgated by the Department of Treasury, the responsibility for providing IRS Form 1099 informational returns with respect to payments made to a payee via a third-party payment network (such as PayPal) lies with such third-party payment network. Under such Treasury regulations, the recipient of the goods or services that such third-party payment network is making the payment on behalf of is relieved of any obligation to file an IRS Form 1099-MISC with respect to such payments. Accordingly, Quri, Inc. will not be issuing IRS Form 1099-MISCs to payees in respect of income from services performed for Easyshift, nor will it be including amounts paid via PayPal on its aggregate Form 1099 submission to the IRS.

Third-party payment networks must generally provide informational returns on IRS Form 1099-K setting forth the gross amount of payments made to a payee during the course of a calendar year. However, third-party payment networks are only obligated to report such payment transactions on an IRS Form 1099-K with respect to payees who (i) receive gross payments in excess of $20,000 in a calendar year from such third-party payment network and (ii) receive such payments over the course of more than 200 transactions. Based on the foregoing, if the gross amount paid to you by PayPal in a calendar year does not exceed $20,000 or you do not receive payments from Paypal in more than 200 transactions, you will not be receiving an IRS Form 1099-K from PayPal with respect to payments of Easyshift income. Whether or not you receive an IRS Form 1099-K with respect to payments of Easyshift income, you are still obligated to include such amounts received in your gross income on your personal tax return.

The above information is based on the current guidance issued by the IRS, and we will seek to inform you if there is any change to such reporting requirements.

PLEASE NOTE: We are not tax experts and cannot provide information about how to report your income from EasyShift. Please consult your tax advisor or the IRS for additional information.

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