IRS Reporting Requirements for Third Party Vendor Payments on 1099-K/1099-MISC
Beginning with tax year 2011, the IRS requires you to exclude certain payment types you made to a 1099 vendor on Form 1099-MISC that will be included on third party payment processors such as credit card companies, PayPal etc. on forms 1099-K.
You need to file 1099 forms for tax year 2011 and have paid 1099 vendors/contractors using payment types other than cash or check, such as debit card, credit card or third party networking companies, like PayPal.
If you paid your 1099 recipients with only cash or check this legislation does not apply to you.
If you have made payments to vendors in tax year 2011 you will only need to report certain types of transactions and exclude others. Intuit is aware of these compliance changes and working on solutions for our customers.
What is a form 1099-K?
Note: Small Business owners do not file a 1099-K form.
I use QuickBooks 2010 or 2011. How do I make changes so my 1099-MISC is correct?
- If you only have a few vendors that you paid with credit card, debit card or third partypayment network, the manual option that allows you to manually find and exclude the non-reportable payments may be best for you. For step by step instructions, please see Exclude nonreportable payments from Form 1099-MISC for QuickBooks 2009-2011 users
- If you have a more than a few vendors can upgrade to QuickBooks 2012 and take advantage of the updated 1099 Wizard. For more information please see QuickBooks 2012 Wizard helps with new filing requirements self printing and filing 1099-MISC
I use QuickBooks 2012 or later. How do I exclude non-reportable payments so my 1099-MISC is correct?
I use QuickBooks MAC. How do I exclude non-reportable payments so my 1099-MISC is correct?
Additional information on the new IRS requirements are available at IRS Third Party Information Center.
The IRS website has the information for the following:
Please continue to check back for additional information and updates.