A taxpayer identity represents the legal person or entity that owns a bank account in your Hemlane account. This can be an individual using a Social Security number or a business entity using an Employer Identification Number.
Why does Hemlane use taxpayer identities
Hemlane must issue a 1099-K form when a payout bank account meets the Internal Revenue Service reporting thresholds for the year. For tax year 2025, Hemlane issues a 1099-K only when both of the following are true for a single bank account:
At least 200 (two hundred) qualifying transactions were processed
Gross payment volume reached at least $20,000 (twenty thousand dollars)
The IRS applies these requirements at the bank account level. Taxpayer identities allow Hemlane to:
Match each bank account to the correct legal taxpayer
Issue a 1099-K form under the right name and tax identification number
Separate reporting when you use different legal entities for different properties
If a bank account does not meet both thresholds, Hemlane does not issue a Form 1099-K for that account.
How do you set up taxpayer identities in Hemlane
Step 1: Go to your Banks and Cards page. You can find it by selecting your name in the top right corner and choosing Banks and Cards.
Step 2: On that page, look for the sentence that says "To manage your taxpayer identities, click here". Select the word here to open the taxpayer identity screen.
Step 3: You will now see a button labeled Add Taxpayer Identity. Select this button to create a taxpayer. You will create one identity for each person or business that owns a payout bank account. Later, you will match each identity to the bank account it belongs to.
Step 4: When the form opens, type in
• the name of the person or business
• their SSN, EIN, or TIN
• their current mailing address
Then choose which bank accounts belong to this taxpayer. Each bank account can have only one taxpayer.
Step 5: After you have filled out the information, save the form. Any bank accounts you assigned to that identity will now disappear from the list called Unassigned Bank Accounts.
If you ever need to fix something, you can edit or delete a taxpayer identity. When you do, any bank accounts linked to it will return to the Unassigned Bank Accounts list so you can reassign them correctly.