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Reporting Requirements for Payments Made Through Third-Party Platforms
May 1, 2025
Q. We have numerous corporate credit card payments facilitated by third party platforms like Paypal, Square, Venmo, etc. Since these platforms issue 1099K but will not issue 1099NEC to vendors if required, are there any concerns about not reporting NEC to the IRS?
A.
(Answered by IOFM's third-party tax advisor)
No, the regulations are quite clear that you do not need to issue a 1099-NEC when a payment is subject to reporting (by another party) on a 1099-K.
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