Here are some frequently asked questions about BILL and 1099's. BILL doesn't give tax advice; we recommend that you consult with your tax advisor on your 1099 obligations.
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- I pay vendors through BILL; do I have a 1099 filing obligation?
- Does BILL report any payments made through our services to the IRS?
- Does BILL report 1099-K to the IRS?
- What if I paid or received money using a debit or credit card?
- What do I do if my vendor did not provide their SSN or TIN?
- What if I only owned my business for a few months last year and sold it.
- Do I need to collect a W-9 or TIN from a vendor who is an individual?
- Is a vendor's TIN the same as their SSN?
- Do vendors need to consent to receive their statement through the mail?
- If a vendor does not respond by the email deadline, can I send the 1099 by both mail and email?
- Do I need to sign the 1096 form when I eFile?
I pay vendors through BILL; do I have a 1099 filing obligation?
Generally, per IRS requirements, certain payments to contractors or vendors may require 1099-MISC or 1099-NEC tax reporting to the IRS. BILL doesn't give tax advice; we recommend that you consult with your tax advisor on your 1099 obligations. Make It Easier to Work with Contractors
Does BILL report any payments made through our services to the IRS?
BILL complies with applicable IRS regulations. Generally, BILL isn't required to report payments made through our services to the IRS. Payers should consult with their tax advisors regarding their tax reporting obligations; payees should consult with their tax advisors regarding the taxability and reporting of the payments they receive.
Does BILL report 1099-K to the IRS?
No. The payments made through BILL don't qualify as third-party network payments under IRS Code Section 6050W, and therefore aren't reported on Form 1099-K. BILL is also not an Electronic Payment Facilitator (EPF), as defined under this code section, for payments made through our service and doesn't issue 1099-Ks as an EPF. It is the Payer’s obligation to issue 1099-MISC or 1099-NEC forms for applicable payments made through BILL.
What if I paid or received money using a debit or credit card?
Payments made using your business’ own debit or credit card are processed by a third party settlement entity (the payment card network). The payment card networks are required to submit gross sales information reporting (IRS Form 1099-K) to the IRS for each merchant. The payment card network will issue a 1099-K, instead of a 1099-MISC.
For 1099 vendors being paid by BILL Vendor Direct, the vendor’s merchant acquiring bank will typically send them a 1099-K. Under IRS regulations, payments made using payment cards are reported by the merchant’s acquiring bank on a form 1099-K. Under these rules, payers aren't required to issue 1099-MISC or 1099-NEC because the merchant’s acquiring bank has the 1099 obligation. BILL isn't a merchant acquiring bank.
What do I do if my vendor did not provide their SSN or TIN?
The general guidance is not to issue a payment to a vendor without collecting their W-9. Alternatively, withhold 28% (per the IRS) if a vendor refuses to provide one. You should consult with your own tax advisors and accountants on what to do for your specific situation.
What if I only owned my business for a few months last year and sold it.
You're still required to file 1099's in this scenario.
Do I need to collect a W-9 or TIN from a vendor who is an individual?
Always collect a W-9 from anyone you pay in the course of your business or trade.
Is a vendor's TIN the same as their SSN?
Not necessarily. The tax identification number (TIN) for an individual is called a Social Security number. The tax identification number for a business entity is usually called an Employer Identification Number (EIN) or just a TIN. It is up to a vendor to provide the correct TIN for filing.
Do vendors need to consent to receive their statement through the mail?
No, but consent is required for electronic delivery (eFile).
If a vendor does not respond by the email deadline, can I send the 1099 by both mail and email?
You can choose to mail and email each vendor as needed in Tax1099.
Do I need to sign the 1096 form when I eFile?
The 1096 form isn't required when you eFile.
