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Do I need to send a 1099 to a vendor I paid with a credit card?
September 5, 2023
Q. I work at a college and sometimes we use a credit card to pay contractors for their services, etc. Do we need to send them a 1099 or does the bank provide one to them?
A.
(Answered by IOFM's third-party tax experts)
If the vendor is a U.S. individual or U.S. entity, your organization does not have the Form 1099 reporting obligation. Under federal regulations, Form 1099 reporting responsibility shifts to the vendor's "merchant acquiring entity" which will include the payment amount in a Form…
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