1099 MISC confusion

[FPSLLC]

Hello,

We are a third party filing service. We receive money on behalf of our clients, deduct our fee, then send the remainder to our client. Do we still send our client a 1099?

The reason for our confusion is that we received several checks from a settlement administrator on behalf of our clients last year that included 1099s that were made out to our clients - as well as the checks themselves. We sent back the checks to the settlement administrator for reissue due to an error in the pay-to name (because they were supposed to be written out to "our company name c/o client name"). Upon receiving the corrected checks they did not include any 1099s with them.

So do we still have to send out 1099s in this case? Also, being a middleman so to speak, should we be sending 1099s out to begin with?

[ColeenD3]

No, you should send a 1099-K.

A payment settlement entity (PSE) must file Form 1099-K, Payment Card and Third Party Network Transactions, for payments made in settlement of reportable payment transactions for each calendar year. A PSE makes a payment in settlement of a reportable payment transaction, that is, any payment card or third party network transaction, if the PSE submits the instruction to transfer funds to the account of the participating payee to settle the reportable payment transaction.

A PSE is a domestic or foreign entity that is a merchant acquiring entity, that is, a bank or other organization that has the contractual obligation to make payment to participating payees in settlement of payment card transactions; or a third party settlement organization (TPSO), that is, the central organization that has the contractual obligation to make payments to participating payees of third party network transactions.

1099-K