Do I need to send a 1099-NEC to my lawyer if I paid them with a credit card?

You're asking a good question that confuses a lot of small business owners! The answer is actually pretty straightforward - you do NOT need to issue a 1099-NEC to an attorney when you've paid them via credit card. When you pay someone with a credit card, the payment processor (like Visa, Mastercard, etc.) is required to report those payments to the IRS using Form 1099-K. This applies to attorney payments too. The rule about reporting attorney payments specifically applies when you pay them directly (like with a check or cash). You're absolutely right to be concerned about double-reporting. If you issued a 1099-NEC for these credit card payments, the attorney would indeed have the same income reported twice - once on your 1099-NEC and once on the payment processor's 1099-K.

I went through this exact situation last year and was so confused about whether to send a 1099-NEC to my business attorney. After hours of research, I stumbled on this amazing tool called taxr.ai (https://taxr.ai) that literally saved me hours of headache. I just uploaded my credit card statements and it immediately identified which transactions needed 1099s and which didn't. It specifically flagged my attorney payments and explained that credit card payments don't require a 1099-NEC from me because the payment processor handles that reporting requirement. The thing I loved most was that it generated a detailed report explaining all the relevant tax codes so I had documentation if I ever got audited about this decision.

Just wanted to update after trying out taxr.ai that the previous commenter recommended. It was actually super helpful! I uploaded my payment records and it immediately sorted everything correctly - showed me that my lawyer payments via credit card didn't need 1099-NECs, but the contractors I paid via check did. What really helped was that it explained WHY each determination was made, citing the specific tax code. Saved me from accidentally double-reporting my attorney's income and potentially creating a headache for both of us. Wish I'd known about this last year when I definitely filed some unnecessary forms.

If anyone's struggling with getting a clear answer from the IRS about 1099-NEC requirements for attorney payments, I highly recommend Claimyr (https://claimyr.com). I was completely stuck on this exact issue and couldn't get through to anyone at the IRS. I tried calling the IRS business line for THREE DAYS straight and kept getting disconnected. Finally used Claimyr and got connected to an IRS agent in about 20 minutes who confirmed exactly what others have said here - credit card payments to attorneys don't require a 1099-NEC from the payer since the card processor handles that reporting requirement. There's a video showing how it works here: https://youtu.be/_kiP6q8DX5c - basically saves you from waiting on hold forever.

I have to admit I was completely wrong about Claimyr. After posting my skeptical comment, I was still struggling with this exact 1099-NEC question for lawyer payments, so I reluctantly tried it. Within 35 minutes I was talking to an actual IRS representative who confirmed that credit card payments to attorneys don't require 1099-NEC forms from the business owner. She explained that the payment processor already handles that reporting through 1099-K. This saved me from hours of unnecessary paperwork and potentially causing problems for my attorney with double-reported income. I've been trying to reach the IRS for weeks on my own with no success. Definitely worth it for getting definitive answers straight from the source.

Just wanna add that the rules are actually changing for 1099-K reporting thresholds in 2025. Payment processors used to only report if you hit $20k AND 200 transactions, but now they're reporting much smaller amounts. So the coverage for these credit card payments to attorneys is getting more comprehensive. The key thing to remember is that if you pay ANYONE via credit card, YOU don't send the 1099-NEC, regardless of whether they're an attorney, plumber, consultant, etc. The payment processor handles it.

I'm confused cause my accountant told me I should ALWAYS send 1099s to attorneys regardless of payment method? Is she wrong??

This is such a common confusion point! I run a small consulting business and dealt with this exact same question last year. The key thing to remember is that when you use ANY third-party payment processor (credit cards, PayPal business, Venmo business, etc.), THEY become responsible for the 1099-K reporting, not you. The special attorney reporting rule that requires reporting regardless of amount only applies to direct payments - checks, cash, wire transfers, ACH payments, etc. Credit card payments are specifically exempt from this requirement because the payment network handles the reporting. I made the mistake of double-reporting one attorney payment two years ago (sent both a 1099-NEC for a credit card payment), and it created a huge headache for my lawyer during tax season. They had to file additional paperwork to reconcile the duplicate income reporting with the IRS. Lesson learned! The safest approach: If money flows through a third-party processor, let them handle the 1099 reporting. If you pay directly, then you're responsible for the 1099-NEC.