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Amount to report when netting a vendor payment with an open invoice
February 7, 2024
Q. We had a vendor that we couldn't get a W-9 from. We were withholding payment to them until we received their W-9. Our AR dept told us they owed us money and rather than send that to collections we decided to pay them for the difference. We owed them $1600 and they owed us $1002, so we paid them the difference of $598. How much should we report on his NEC?
A.
(Answered by IOFM's third-party tax experts)
Form 1099-NEC reporting is in general real-time, cash-based reporting. An amount is…
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