I was informed that third party network transactions do not require a 1099-NEC to be filed.
I pay our vendors, including individuals, through QuickBooks Payments, which is a third party network.
I paid someone for a "service", not merchandise, using QuickBooks Payments.
Is it correct that I will not need to file a 1099-Nec for this individual since it will get reported on a 1099-K?
Thank you.
Yes, you are correct.
These instructions for form 1099-NEC are on page 9 of this IRS document:
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-NEC. See the separate Instructions for Form 1099-K.
Yes, you are correct.
These instructions for form 1099-NEC are on page 9 of this IRS document:
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-NEC. See the separate Instructions for Form 1099-K.