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.

Improved state ID collection

In our platform onboarding flow for tax year 2023, we clarified the strict ID requirements for filing in two states: Delaware and Pennsylvania. If you intend to file in either of these states, include your state IDs during this step to prevent possible rejection of your filings.

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. You must include all columns except for form_id and stripe_account_id. E-delivery isn’t available for standalone forms (only postal mailing is allowed for delivery).

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. When there are multiple forms with the same TIN, we aggregate the totals from each form with a maximum of 100 other forms. However, if forms of different types share the same TIN, we might not aggregate them. In these cases, check your filing eligibility and apply an override if necessary. To simplify finding other forms grouped with a particular form, use the Forms grouped with filter.

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 use the Pre-filing confirmation status filter. 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. 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 Emails 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.

Send Stripe pre-filing confirmation invites

Platforms who enable e-delivery can choose to have Stripe collect identity information and paperless delivery consent directly from their connected accounts through pre-filing confirmation. This email invites your user to Stripe Express. If you need to send a one-off pre-filing confirmation email (for example, your user didn’t receive one since they had the wrong email on file), you can now do it from the 1099 dashboard. Learn more about how to resolve issues related to your user not receiving a pre-filing confirmation email.

Reset account claim attempts

Connected accounts must claim their Stripe accounts to view the Tax Center in the Express dashboard. To authorize the claim, Stripe asks the user a series of questions to verify their identity. For security reasons, if the user fails to correctly answer the verification questions too many times, Stripe locks their account. You can now see the status in the 1099 dashboard, and you can reset your user’s claim attempts directly in the 1099 Dashboard. Learn more about how you can use these new features to self-resolve account claim issues.