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Level 1

Bank transfers made through Intuit Payment Network

Should payments made to me from my clients via Bank Transfers (not credit cards) through Intuit Payment Network be included on a 1099 form to me from my clients?

3 Comments
Moderator

Bank transfers made through Intuit Payment Network

Hello @bdavisaz,

 

Let me help share information about the payment you need to report when preparing and filing your 1099 forms.

 

To start with, online payments made through Intuit from your clients are excluded for 1099 reporting. That being said, here's an article you can read to learn more about the payments reported on 1099: What payments are excluded from a 1099-NEC and 1099-MISC?

 

Additionally, I've also included this helpful article for a compilation of references you can use for your year-end preparations: Year-end guide and checklist.

 

If there's anything else that I can help you with, please let me know in the comments below. I'll be here to lend a hand. Stay safe!

Level 1

Bank transfers made through Intuit Payment Network

JonpriL, 

 

Thank you for your reply.  I followed your first link to this page at www.irs.gov: 

https://www.irs.gov/tax-professionals/third-party-reporting-information-center-information-documents

At this page I read "The IRS uses third-party information reporting on forms in the 1099 series to increase voluntary compliance and improve collections. Beginning in 2011, legislation requires reporting of income in two areas: payment card (credit, debit and certain electronic transactions) and securities basis reporting."  I understand and agree that payments made through Intuit Payment Network using a credit or debit card would be excluded from a 1099 issued to me by my client.  I'm still unconvinced that Bank Transfers should be excluded since they do not involve a payment card.  Do Bank Transfers fall under the "certain electronic transactions" and would, therefore, be reported to the IRS by Intuit Payment Network and not on a 1099 form from my client? 

Moderator

Bank transfers made through Intuit Payment Network

Thanks for posting here again, @bdavisaz,

 

Joining the thread to share more information about this 1099 concern.

 

Reportable payments such as cash, check, direct deposit, or electronic funds transfer are included on Form 1099-MISC.

 

Electronic fund transfers includes wire transfer, electronic check, ACH, online bill pay (bank to bank only).

 

To get further information about this, you may refer to the 1099 instructions here: Instructions for Form 1099-MISC - Internal Revenue Service

 

It is also best to contact an accountant or the IRS for further explanation on what information are reported in the 1099 forms you're filing.


Let me know if you have any other questions about this. I'd be more than happy to share some more insights with you about IRS forms and other things in QuickBooks. Have a good one!

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