What's new for tax year 2023

For tax year 2023, Stripe is introducing features that help Connect platforms efficiently and accurately meet their 1099 tax reporting obligations for Custom and Express US-based accounts. The 2023 tax year features help platforms comply with their 1099 tax reporting obligations at scale.

Early access to editable tax forms

Starting in August, you can access preliminary 2023 tax forms and associated tax reporting features directly from your Stripe Connect Dashboard. Your team needs either Administrator or Tax analyst user permissions to get started.

Along with early access to tax forms, you can start editing tax forms right away, as opposed to waiting to make edits in January. You can do so for individual tax forms or in bulk by importing a CSV file.

Create and update tax forms

Stripe provides several features to help you create and update tax forms.

Deltas

Importing tax forms using Delta allows you to add to (or subtract from) the values on the initial tax form totals from Stripe. This lets you report just the totals of transactions that happened outside of Stripe. You don’t need to sum the values from Stripe with external values—instead, you only need to provide the delta amounts and Stripe does the rest. This is particularly useful if you have multiple payout mechanisms or reimbursements on Stripe connected accounts for activity that happened outside of Stripe.

Zero dollar tax forms

Platforms can generate tax forms for a Stripe account ID, even when it hasn’t received any payouts in 2023. If your connected account doesn’t already have a tax form, performing Update imports (to override form values supplied by Stripe) or Delta imports (to make incremental changes to form values supplied by Stripe) automatically creates the form.

Standalone tax forms

You can create standalone tax forms for accounts that might not be a connected account (for example, accounts from a different provider). You can create them seamlessly by using a Create import with a CSV file containing the data of the form you want to generate.

Increased CSV import and export speed

If you’re using CSV imports to create or modify tax forms, we’ve increased the speed of CSV imports and exports by up to 10 times the speed of previous years.

Improved splitting and grouping of forms

You can use pre-filing splits and improved TIN aggregation to reduce the amount of overhead for filing taxes.

Pre-filing splits

You can now split tax forms to handle account ownership changes before filing the forms. Splitting a 1099 tax form means that you distribute the amount initially reported on a single 1099 form across two 1099 forms. Previously, you could only split tax forms post-filing, meaning you might have needed to file the wrong tax forms and then correct them. Now, after January 1, you can do so before filing from the 1099 Dashboard.

Improved TIN aggregation of tax forms

Forms that share the same TIN get their totals aggregated to determine filing eligibility at all times, even when the platform updates the tax form totals or identity data. You no longer need to export and override filing statuses. We’ve also added a Forms grouped with filter to let you find what other forms are grouped with a particular form.

Form Delivery Improvements

You can use the Dashboard to track delivery status and Stripe outreach emails, and to address missing emails.

Delivery status visibility

You can now view both postal delivery and e-delivery statuses directly in the 1099 Dashboard. You can also filter for both statuses. Previously, we only showed a combined delivery status, which reported the best result between the e-delivery and postal delivery status. With the combined status, if one of the forms was successfully delivered (but not the other) it showed a status of delivered. In other words, if e-delivery was successful and postal delivery was unsuccessful, the combined status was delivered. Going forward, you can track the individual status for each of the forms you deliver.

Tracking Stripe outreach

If your platform opts for e-delivery through Stripe Express and enables the collection of tax information in advance using 1099 tax form settings, Stripe sends emails to the connected accounts on behalf of platforms. We do this to confirm their tax information and provide e-delivery consent through Stripe Express. You can now track the status of that outreach directly in the 1099 Dashboard, and filter for it. The status is either ineligible, queued, sent, or not sent.

Addressing missing emails

For e-delivery with Stripe Express, the connected account owner must be able to receive the email from Stripe inviting them to create their account. Stripe can’t electronically deliver the forms without the email address for the account. If you’ve opted in to paper delivery, we send paper forms (assuming we have a valid delivery address). You can now filter for any accounts with missing emails and add them to allow e-delivery. You’ll also see a banner on your 1099 Dashboard if more than 25% of your accounts have missing emails. Any emails added by the following methods will result in updating the email on the connected account, which will carry over each year.

• Use the Update API.
• Use the CSV import functionality on the Communication settings page in the Dashboard. New
• Edit the email addresses in the Payee Details section in the 1099 dashboard. New

You can no longer update email addresses using the email_address field in a CSV import directly into the 1099 product. Changes made using this method don’t carry over each year.