#6 appears incorrect. 1099-K is a form prepared by credit card processing services informing the IRS about their merchants' annual transaction volume. It's not something FilePicker or any other company outside the payment services industry would send to vendors.
The author might be confusing it with 1099-MISC, which PayPal does not take care of for you. If you pay individuals (or LLCs that have not elected to be treated as a corporation) over $600 during the year, you have to send them and the IRS a 1099-MISC to report that non-employee compensation.
Should have articulated this better in the original post
[I am not a lawyer so I'd suggest talking to yours to nail it down.]
1. 1099-k: over $20,000 in goods and services sales and completed 200 transactions.
There is an Etsy link quoted in the comments that explains Paypal's role in these transactions clearly.
2. 1099-MISC forms: Paypal used to issue 1099-MISC. They stopped issuing these since they discontinued the option to direct debit your money market account for payments.
Hope this clarifies.
[Edit]-just got off the phone with Paypal support and they confirmed that they don't issue 1099-Misc
[Edit-2]-proof why things like this are a time sink! outsource and get back to building product and talking to users.
Comments
#6 appears incorrect. 1099-K is a form prepared by credit card processing services informing the IRS about their merchants' annual transaction volume. It's not something FilePicker or any other company outside the payment services industry would send to vendors.
The author might be confusing it with 1099-MISC, which PayPal does not take care of for you. If you pay individuals (or LLCs that have not elected to be treated as a corporation) over $600 during the year, you have to send them and the IRS a 1099-MISC to report that non-employee compensation.
Should have articulated this better in the original post [I am not a lawyer so I'd suggest talking to yours to nail it down.]
1. 1099-k: over $20,000 in goods and services sales and completed 200 transactions.
There is an Etsy link quoted in the comments that explains Paypal's role in these transactions clearly.
2. 1099-MISC forms: Paypal used to issue 1099-MISC. They stopped issuing these since they discontinued the option to direct debit your money market account for payments.
Hope this clarifies.
[Edit]-just got off the phone with Paypal support and they confirmed that they don't issue 1099-Misc
[Edit-2]-proof why things like this are a time sink! outsource and get back to building product and talking to users.