If I paid $1200 (gross) to a vendor, but the vendor paid me for credits of $700, do I report the $1200 on the 1099, or not issue one at all since the net is <$600?

[Anonymous · Accepted solution]

you paid him more than $600 gross, play it safe issue the 1099. vendor should be issuing you a 1099 for the $700.

nothing in the instructions speaks to offsets.

https://www.irs.gov/pub/irs-pdf/i1099msc_18.pdf