Anyone here 1099s their Credit Card Processor?
 

For instance CCBill, Epoch, etc.
They are providing a service for us and we are paying them (the percentage that goes to them from every sale). According to the IRS, we are supposed to 1099 them.
Anyone does it?

Interesting question. I write off all the fees anyway, so I'm not sure how it would help.

Looking forward to other answers.

Only independent contractors that perform work for you that are not a corporation are 1099'ed.

But... how do I prove to the IRS that I indeed paid all those thousands of dollars for processing fees? Isn't it better to 1099 them? I just found this online, from a CPA:
"You don't have to give a corporation a 1099, but if it is a very large item on your profit and loss statement, you can def give a 1099. Actually I would recommend you do.
Greg Freyman, CPA"
on this page:
https://www.askmehelpdesk.com/taxes/...9s-176600.html

They should send you a 1099-K... i'm not sure if it's required though. Paypal, chase paymentech, bofa, and american express all sent them to me (non-adult)

Understanding Your Form 1099-K

Anyone get their Chaturbate 1099?

You can only write off if it hits your account and is then deducted from your account. You can't write off fees that they wilthhold because you aren't being taxed on money you never received.
Duke

I only report income that hits my account and debits that subtract from it. Imaginary money that I never see is not my problem, so far my accountant has no issues with that and likes the fact that my statements and balance sheets line up with my account statements to the penny every month.

Correct !

I don't have a CCBill account, but with a different type of processing fees, I claim the gross, and write off the fees.

Afaik, either way is fine. My CPA is ok with how I do it. I agree with you that you can't use the net figure and also deduct the fees.

You are correct!

Mitch

I wouldn't send them out. Like everything else with taxes you really only ever have to prove what is questioned. If audited the IRS would want a lot more than a copy of a 1099 you sent out to prove you paid it out anyway. So there is really no benefit IMHO

:error:error:error

You should let a professional do your taxes.

I'm talking about the extra 2k they hit me with at the end of the month. Not what's not deposited.

I assume in this instance the OP is talking about fees like that in addition to processing transaction fees.

He's a little weird, but a real live CPA.

After reading someones Delaware incorporation thread I'm just annoyed though. Should have done that instead of in NJ.

I got 1099 problems and a processor ain't one.

:1orglaugh:1orglaugh:1orglaugh

How are you writing off fees if you never actually accrued them? Didn't you say you were running a 7 figure business? lie much lol

Let me say it s l o w l y for you. I am given the money as included in my GROSS income and reported to IRS, but ending each month they debit my bank account for ADDITIONAL fees which are reported in my GROSS income and soooo I write them off in addition to my transaction fees.

I really leave it to my CPA cause that's his job.

And no, I don't lie much.

They were sent to the mailing address on file. LMK if you didnt get it.