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Do Credit Card Payments to Foreign Vendors Require 1042 Reporting?
October 30, 2025
Q. We have two foreign vendors that we work with, but we pay them via credit card. Do we still have to do 1042 reporting on those foreign vendors or does the credit card company take care of reporting like in the case of 1099s.
A.
(Answered by IOFM's third-party tax expert)
Yes, you still have the 1042 (and possible withholding) obligations. The exception to reporting when using a credit card only applies to payments to U.S. vendors and form 1099 reporting.
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