Forms 1099-K, -NEC & -MISC Reporting
So, if a business pays a vendor with a credit card is the business required to issue the vendor a 1099 since the credit card company will be issuing the business a 1099-K for the income and issuing a 1099 would be doubling up the income. This is from the 2022 1099 instructions for 1099-NEC and 1099-MISC:
Beginning with tax year 2022 if someone receives payment for goods and services through a third-party payment network, their income will be reported on Form 1099-K if $600 or more was processed, regardless of the number of transactions, as opposed to the 2021 and prior Form 1099-K reporting requirement of 200 transactions and $20,000. This change could impact people working in the gig economy, online sellers, independent contractors, and other self-employed business owners.