Tax Musings of a Burbank CPA: Does A Business Have to send 1099MISC to Vendors for Credit Card Payments?

Well, February 2 is the day you have to get 1099MISC statements to your vendors.  What happens if you paid your vendor by PayPal or credit card; do you still have to send 1099s to them?  The answer is no – see this posting in Small Business Trends by Anita Campbell for the reasons:

http://smallbiztrends.com/2015/01/1099-contractors-paypal-credit-card.html

Since the electronic processors send the info to the vendor on a form 1099K, you are off the hook for reporting – they do it for you.  Just remember if you send a check you still have to 1099 those vendors.

   Form 1099K 2 Form 1099K 2014 Strong Money Flexing 2012For financial,  accounting and tax musings,

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