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1099 Reporting for Vendors with Early Payment Discounts

January 15, 2025

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Q. We have a few vendors we have early pay discount with that are also 1099 reportable. Should the amount the vendor is sent on the 1099 reflect the actual cash paid or the amount that the invoice is processed for. Example: We have vendor with 10%15 N 60 terms that is 1099 reportable and we receive a 10K invoice.If paid within 15 days do we send a 1099 for 9K (the amount actually paid) or 10K ( the amount we processed invoice for). A. (Answered by IOFM's third-party tax expert) You would…

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