Dwolla incident

Issued 1099K forms with inflated amounts

Minor Resolved View vendor source →

Dwolla experienced a minor incident on January 29, 2026 affecting Tax forms, lasting 5d 17h. The incident has been resolved; the full update timeline is below.

Started
Jan 29, 2026, 10:42 PM UTC
Resolved
Feb 04, 2026, 03:51 PM UTC
Duration
5d 17h
Detected by Pingoru
Jan 29, 2026, 10:42 PM UTC

Affected components

Tax forms

Update timeline

  1. identified Jan 29, 2026, 10:42 PM UTC

    Dwolla has issued some 1099k forms to end users with the amounts higher than expected. If your business has customers who are receiving a 1099k from Dwolla, they may have received a form 1099k with the wrong amount. The Dwolla team is aware of the issue and is taking steps to correct it. We will provide more information on the steps taken as it becomes available. Note that Dwolla's payment platform and API are not impacted by this issue.

  2. identified Jan 30, 2026, 12:36 AM UTC

    We have sent an email to all affected end users explaining what happened and informing them that corrected Form 1099-K will be issued, sent to them, and filed with the appropriate tax authorities. We are working through the process to send the corrected 1099-K forms to end users, and we will get those sent and filed by the February 2, 2026 deadline. Note that Dwolla's payment platform and API are not impacted by this issue.

  3. identified Jan 30, 2026, 11:47 PM UTC

    We have resolved the issue that caused incorrect amounts. We intend to file the updated 1099K forms with the appropriate tax authorities on Monday morning to avoid any operational impact over the weekend. We will provide an update when this is complete.

  4. identified Feb 02, 2026, 11:54 PM UTC

    Most of the incorrect 1099K forms that were sent to end users were stopped before they were filed with tax agencies. These 1099K forms have been updated and filed. A small number of 1099K forms were filed with tax agencies and require corrections. The team is working through the corrections process. We will provide an update when this is complete.

  5. resolved Feb 04, 2026, 03:51 PM UTC

    The team has completed the Form 1099K corrections and filed them with the appropriate tax agencies. This incident is resolved.