swaitsandClaude Opus 5.5
249e216fc0
A vendor's 1099 decision is its own dated fact (files NEC or MISC, not reportable with its reason, or undetermined), applied by each payment's date. Payment methods are recorded; card and network payments are left out and listed; a member's check through financing counts; a bank payment with no method counts (D-40); $2,000 for payments after 2025. One worksheet for the tool, the viewer and the CPA package. Co-Authored-By: Claude Opus 5.5 <noreply@anthropic.com> Claude-Session: https://claude.ai/code/session_01T3gXMVt7XJPi6ens1or9Dj
102 lines
3.0 KiB
TOML
102 lines
3.0 KiB
TOML
id = "1099-card-payments-are-excluded"
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title = "Payments by card are left off Form 1099-NEC, and listed"
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rule = """
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A payment made by payment card (credit, debit or stored-value) or through a
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third party payment network that section 6041 would otherwise cover is
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reported by the payment settlement entity on Form 1099-K under section 6050W,
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not by the payer on Form 1099-NEC or 1099-MISC, whoever's card it was. A
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payment by check, ACH or transfer counts toward the payee's 1099-NEC. A
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bank payment with no payment method recorded is presumed a check, ACH or
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transfer; a debit-card payment from the bank is excluded once tagged with
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the card.
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"""
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status = "AUTHORITY"
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sources = [
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"Treas. Reg. §1.6041-1(a)(1)(iv) (docs/spec/sources/irs-1099-payment-method.md)",
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"Treas. Reg. §1.6050W-1(b)(1), (b)(3) (payment card; accepted as payment)",
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"IRS, Understanding your Form 1099-K (credit, debit or stored value cards)",
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"Instructions for Forms 1099-MISC and 1099-NEC (Rev. 12/2026), Form 1099-K",
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"DECISION D-40 (wanderbooks owner, 2026-10-20): an untagged bank payment counts",
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]
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tags = ["1099", "payment-card", "instruments"]
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[setup]
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currency = "USD"
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fiscal_year_start = "01-01"
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basis = "cash"
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rounding = "half-away-from-zero"
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cash_accounts = ["1000"]
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financing_accounts = ["2100"]
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[[setup.accounts]]
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code = "1000"
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name = "Bank"
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type = "asset"
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[[setup.accounts]]
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code = "2050"
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name = "Company card"
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type = "liability"
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[[setup.accounts]]
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code = "2100"
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name = "Due to Members"
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type = "liability"
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[[setup.accounts]]
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code = "6000"
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name = "Contract Labor"
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type = "expense"
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[[setup.instruments]]
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label = "Harbor Visa"
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kind = "business_card"
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account = "2050"
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[[setup.instruments]]
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label = "Harbor debit card"
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kind = "business_card"
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account = "1000"
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[[setup.payees]]
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name = "Harbor Design LLC"
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form = "1099-NEC"
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[[events]]
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date = "2026-02-10"
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description = "Design work, charged to the company card"
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payee = "Harbor Design LLC"
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lines = [
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{ account = "6000", side = "debit", amount = "2500.00" },
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{ account = "2050", side = "credit", amount = "2500.00" },
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]
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[[events]]
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date = "2026-03-10"
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description = "Design work, paid with the debit card"
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payee = "Harbor Design LLC"
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instrument = "Harbor debit card"
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lines = [
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{ account = "6000", side = "debit", amount = "1200.00" },
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{ account = "1000", side = "credit", amount = "1200.00" },
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]
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[[events]]
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date = "2026-04-10"
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description = "Design work, paid by check"
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payee = "Harbor Design LLC"
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lines = [
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{ account = "6000", side = "debit", amount = "900.00" },
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{ account = "1000", side = "credit", amount = "900.00" },
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]
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# By hand: counts 900.00 (the check); excluded 2,500.00 + 1,200.00 =
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# 3,700.00 (the card's account, and the bank payment tagged with the debit
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# card); 900.00 < 2,000.00: no 1099 is due.
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[[expect]]
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query = "vendor_1099"
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payee = "Harbor Design LLC"
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from = "2026-01-01"
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to = "2026-12-31"
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values = { status = "under_threshold", threshold = "2000.00", paid = "900.00", excluded_card = "3700.00", undetermined = "0.00", not_reportable = "0.00" }
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