Cash basis s-corp client paid expenses to a 1099 vendor in 2017 with his personal credit card but did not get reimbursed by company until 2018. which year is 1099 filed

[itslate2009]

Since client is a cash basis s-corp, expenses aren't typically deducted until paid.  However, since a 1099 needs to be issued to the vendor, is that driven by the payment of the reimbursement to the employee/owner in 2018 or when he paid the expense, in 2017?

[MinhT · Accepted solution]

The expenses are considered as paid at the time the credit is charged, regardless of when the credit charge is paid or when you are reimbursed by the S-Corp.

However, as it was paid with a credit card, you are not required to issue and file form 1099-MISC. The credit card company will handle all required reporting.

[itslate2009]

Thank you!