Tax Forms

Updates

• 10/31/24 - Preliminary update for tax year 2024.

• 12/18/23 - Added FAQ regarding opt-out procedure.

Background

This page explains the circumstances under which Priori will report payments received through our platform for tax purposes.

Since 2021 the Internal Revenue Service (IRS) has been preparing to implement guidelines which will require digital marketplace platforms like Priori to report certain third-party network transactions through Form 1099-K.

The IRS has so far announced that it intends to treat tax year 2024 as a transition year. Guidance continues to evolve, and this page will be regularly updated in the coming months as we prepare for the upcoming tax season.

Tax Forms for Tax Year 2024

Priori's position is the same in tax year 2024 as it was in 2023. To ensure certainty for Priori Network providers heading into tax season, and to prepare for compliance with the new guidelines, Priori is electing to issue 1099-Ks to eligible providers who received payments totaling $600 or more through our marketplace platform in 2024, unless those providers ask and are eligible to opt-out.

You can read more in the detailed FAQ below.

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Frequently Asked Questions

Why is Priori now issuing 1099 forms?

This is a change we have made to simplify tax season for members of our Network and prepare for compliance with updated laws and IRS guidelines, which will soon require digital platforms like Priori to report certain third-party network transactions through Form 1099-K.

Through the American Rescue Plan Act of 2021, Congress adjusted the third-party transaction reporting threshold from $20,000 and 200 transactions to platform transactions of $600 or more in aggregate, regardless of the number of transactions.

In 2022, the IRS issued guidelines delaying implementation of the updated reporting requirement until the 2023 tax year – and, in November 2023, the IRS confirmed that tax years 2023 and 2024 would both serve as transitional years. Our goal is to ensure Priori is in compliance with the updated laws and guidelines, while also ensuring that providers in our Network have everything they need for tax reporting.

Am I eligible to receive a 1099-K?

The thresholds for receipt of a 1099-K are set by the IRS and state tax authorities– you can read more about this and other 1099-K FAQs on their official website.

This year, the IRS has elected to set a transitional threshold of $5,000. However, many states have already set lower thresholds, and the IRS filing threshold is slated to drop to $600 in future tax years. To help Priori providers enjoy certainty and predictability in their 2024 tax reporting, you should expect to receive a 1099-K from Priori if you’ve been paid $600 or more in the calendar year through Priori and you’re based in the US or are a US taxpayer.

I am not a U.S. citizen and do not pay tax in the United States – do I need a 1099-K?

If you are not a U.S.citizen and do not pay tax in the US, you should not expect a 1099-K. If you do not pay tax in the United States, you can still view a record of your Priori marketplace transactions by logging in to your Priori account or contacting our team ([e-mail]).

What is the process?

We will be partnering with our payment processor, Stripe, to facilitate the issuance of the 1099-Ks to eligible providers who received payments totaling $600 or more through our talent marketplace in 2024.

What this means for you:

• By early January 2025, eligible providers will receive an email from [e-mail] with a request to confirm tax information and delivery preferences. The available options are e-delivery or paper mail delivery.

Important Note: The email will be sent from "Priori Legal, Inc" <[e-mail]> with the subject line “Get your Priori Legal, Inc 2024 tax forms faster by enabling e-delivery.”

• The email will prompt you to create a Stripe Express account to confirm your tax information and delivery preferences. Stripe Express is a secure mobile app and web experience built by Stripe that will allow you to receive and access your tax forms online. In reviewing your information, please ensure your TIN or EIN is accurate.

• You will receive an email notification from Stripe Express by January 31, 2025 once we have filed your form. If you enable e-delivery, you’ll be able to access your 1099-K immediately in Stripe Express once it becomes available. Otherwise, paper forms delivered via postal mail will be delivered by February 15, 2025.

Important Note: The email will be sent from “Priori Legal, Inc” <[e-mail]> with the subject line “Your Priori Legal, Inc 1099 tax form is ready.”

Should I provide Stripe with my personal tax information or tax information for my law firm or business?

This will depend on how you have practiced and received payments through the Priori platform and the details of your practice structure. Priori cannot offer you tax advice. We recommend consulting with a tax professional for guidance based on your individual tax situation.

What is included on my 1099-K?

Stripe will include the total amount paid out to you on your 1099-K, as well as the volume of transactions and the tax information you provide to them.

What is Stripe and Stripe Express?

Stripe is a multinational financial services company and best-in-class payment processor. Priori uses Stripe to process payments made through the Priori platform. Stripe Express is a secure mobile app and web experience built by Stripe that allows you to access your tax forms online.

What if my personal or company details are incorrect on Stripe?

The information displayed on Stripe is typically the information provided when you first verified your identity after joining Priori. You can update the information via Stripe Express or contact our team ([e-mail]) for assistance.

When will I get my Form 1099-K?

For tax year 2024, you will receive an email notification by January 31, 2025 once Priori has filed your form. If you enable e-delivery, you’ll be able to access your 1099 tax form immediately in Stripe Express once it becomes available. Otherwise, paper forms delivered via postal mail will be delivered by February 15, 2025.

How will I receive my 1099-K?

As noted above, you will receive an email notification by January 31, 2025 once Priori has filed your form. If you enable e-delivery, you’ll be able to access your 1099 tax form immediately in Stripe Express once it becomes available. Otherwise, paper forms delivered via postal mail will be delivered by February 15, 2025.

What should I do if my 1099-K is incorrect?

If you believe there is an error in your 1099-K, please provide us with specific details of the discrepancy. Our team will review and, where appropriate, work with Stripe to issue a corrected form.

Do I need to report this income on my tax return?

Priori cannot offer you tax advice, though it is important to know that the IRS (and, where required, state tax authorities) will receive each 1099-K when Priori files it. We recommend consulting with a tax professional for guidance on how to report this income accurately based on your individual tax situation.

I would not like Priori to report my income via Form 1099-K this year. Can I opt out?

This depends on whether the total payments you received from Priori fall below the IRS threshold for tax year 2024, and any threshold set by the state in which you are a tax resident. Provided that you are not a resident of a state with a reporting threshold lower than the current federal threshold, and do not meet the current IRS threshold ($5,000 or more in calendar year 2024), we can opt out of reporting your earnings activity for the 2024 tax year. Please contact [e-mail] with your request at your earliest convenience and a member of our team will contact you.

What if I didn't receive my 1099-K?

If you haven't received your 1099 form by January 31, 2025 (for e-delivery) or February 15, 2025 (if you elected for postal delivery), please let us know and we will look into the issue.

What if I worked on a W-2 matter through Priori?

If you worked on a matter or matters that required you to be employed by our workforce solutions partner (Precision Global Consulting (PGC)) for the duration of the engagement, you will receive tax documents directly from PGC for payments received on those matters.

What should I do if I also receive a 1099 from a Priori client?

If you receive a 1099 form from both our platform and a customer on the platform for the same earnings, we recommend consulting with a tax professional to ensure that your income is appropriately stated on your tax return. They can provide specific guidance on how to accurately report your income on your tax return.

Will this change affect my earnings or rate on Priori?

This change in tax reporting does not affect your earnings or the rate you charge and that clients pay on our platform. There is also no cost or fee for you to use Stripe Express to receive your 1099-K.Your earnings and the way you receive them will remain the same.

I have another question not answered here.

Please contact [e-mail] if you require further assistance.