I find it hard to believe the IRS would allow a $20,000 loophole:
—i.e. that a service provider could be paid $19,999 via PayPal and not get a 1099-NEC or a 1099K!
I confirmed today via Message from within my client’s PayPal account that PayPal does not issue a 1099K unless the recipient received $20,000 or 200 transactions.
https://www.paypal.com/us/smarthelp/article/will-paypal-report-my-business-sales-to-the-irs-faq729
So what is the authoritative link/reference/website saying that if my client’s business paid for business services > $600 they do NOT need to issue a 1099-NEC to their independent contractor just because payment was issued through PayPal?
No less than 5 of us CPA’s have been on the phone and emailing today discussing this question.
