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Should we 1099-report a deposit that was later returned?
January 10, 2024
Q. I paid a 1099 vendor in early 2023 as a deposit for some work to be completed. That work was not completed and the vendor sent a refund check. Do i still send this vendor a 1099?
A.
(Answered by IOFM's third-party tax experts)
If the vendor returned the entire payment amount to your company before the end of 2023, that eliminates what would have been Form 1099-NEC reporting; you don't file a 1099.
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