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How should transactions be reported if a merchant has receipts classified under more than one MCC?

If a merchant has receipts classified under more than one MCC, the reporting entity may either:

  • File separate Forms 1099-K reporting the gross reportable transaction amounts attributable to each MCC, or
  • File a single Form 1099-K reporting gross reportable transaction amounts and the MCC that corresponds to the largest portion of total gross receipts.

Additionally, if a reporting entity (or its processor) employs an industry classification system other than or in addition to MCCs, the reporting entity should assign to each payee an MCC that most closely corresponds to the description of the payee’s business.

For additional information see the IRS Payment Card Transactions FAQs