As a seller on Shopify, you receive Form 1099-K and the IRS receives a copy if you meet the $600/any transactions threshold. When you receive this form, you need to fill out Section C. “The Form 1099-K is processed through Shopify Payments” and is calculated based on gross sales, not accounting for taxes, fees, shipping, and more. To learn more, check out the Tax Reporting section of Shopify’s Help Database.