Depending on your account status, total annual transactions and other factors, you may receive a tax form from DriveShare near the end of the tax year.
As always, we encourage you to consult a tax professional for assistance reporting your income. DriveShare may issue tax forms in the following situations:
1099 K Requirements
The Internal Revenue Service (IRS) requires that all US companies operating as a third party settlement organization (TPSO) to report any information concerning third network transactions of any participating payee only if, for the calendar year:
- The gross amount of total reportable payment transactions exceeds $20,000, AND
- The total number of such transactions exceeds 200.
If a business makes payments via a third party settlement organization as well as cash or check to the same independent contractor, the third party will be required to report the amount of reportable transactions that exceed the minimum thresholds on Form 1099-K. If you cross both IRS thresholds in a calendar year, DriveShare will provide you with a Form 1099-K.
Delivery of Form 1099-K
Any Form 1099-K issued to you will be mailed to the address you provided along with your taxpayer information. You may receive more than one Form 1099-K if your taxpayer information is listed on multiple DriveShare accounts.
Tax Advice
Keep in mind that DriveShare cannot and does not offer tax-related advice to any members on the site. Additionally, each owner is responsible for determining local indirect taxes and for including any applicable taxes to be collected or obligations relating to applicable taxes in listings. You can read more on taxes by clicking on the link to the IRS page that better explains the Sharing Economy Tax.