@AmyC
I reopened this discussion last year and didn't send 1099s to my independent contractors (VAs) as I paid them via PayPal. But after reading through the responses the last day or two, I'm confused.
I checked out https://www.irs.gov/instructions/i1099msc and saw this:
Form 1099-K.
Payments made with a credit card or payment card and certain other types of payments, including third-party network transactions, must be reported on Form 1099-K by the payment settlement entity under section 6050W and are not subject to reporting on Form 1099-MISC. See the separate Instructions for Form 1099-K.
And then this (from https://www.irs.gov/businesses/understanding-your-form-1099-k:(
Form 1099-K, Payment Card and Third-Party Network Transactions, is an IRS information return used to report certain payment transactions to improve voluntary tax compliance. You should receive Form 1099-K by January 31st if, in the prior calendar year, you received payments:
- From payment card transactions (e.g., debit, credit, or stored-value cards), and/or
- In settlement of third-party payment network transactions above the minimum reporting thresholds as follows:
- For returns for calendar years prior to 2022:
- Gross payments that exceed $20,000, AND
- More than 200 such transactions
So do I need to send out 1099s to be on the safe side or can I avoid it?
(One of my VAs no longer works for me and I haven't been able to contact her since her daughter got very sick.)
Also, where does Zelle stand in all of this? I pay one of my VAs via Zelle. She is an American living in France and pays French taxes. She said she doesn't need me to send anything. But do I for my own safety?
Thanks,
