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Fees paid to a payment settlement company
February 7, 2024
Q. We have credit card machines to accept payments through a payment settlement company. We do not pay the payment settlement company directly. They subtract their fees from the payments they collect on our behalf before issuing the balance to us. Do we need to track the fees they are subtracting from our payments and issue them a 1099-NEC?
A.
(Answered by IOFM's third-party tax experts)
The most common fact situation is that the processor is a financial institution (a corporation) or a…
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