Using PIRYX/RALLY does not necessarily affect your taxes. PIRYX/RALLY helps you organize your payments and under certain circumstances will issue you Form 1099-K, a requirement from the IRS. Form 1099-K is the IRS’s information return for reporting the movement of funds.
How should I use the information from the 1099-K form?
PIRYX/RALLY will not report the funds that you collected as earned income. The 1099-K form is simply intended to track the movement of funds. It is up to you (and a tax professional) to determine whether your proceeds represent taxable income.
What if I only receive gifts and donations?
The purpose of Form 1099-K is to report payments for the provision of goods or services, which may be subject to tax. Gifts and donations typically are not reported as income by recipients. It is up to you (and a tax professional) to determine whether your proceeds represent taxable income.
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