Do you need to request a W-9 form in order to send us a 1099-NEC?
No, if you only paid via credit card, then you are not required to issue a 1099-NEC form to InflatableOffice, LLC.
Details:
- The W-9 form is used for tax information in order to fill out and send a 1099-NEC form to show that you paid a vendor or contractor at least $600 for the year.
- However, it is important to know that you are not required to issue a 1099-NEC form when you pay via credit card.
- This is because the IRS requires the credit card processing company to issue the 1099 (more specifically, the 1099-K).
- Per the IRS instructions (for forms 1099-MISC and 1099-NEC): "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".