Circuit’s payment provider is considered a “Payment Settlement Entity” (PSE) by the IRS. When an individual (Payee) is paid for services via a PSE, a different tax code is applied by the IRS; The IRS no longer requires the Organization (Payer) to file a 1099-MISC because the 1099 reporting responsibility now shifts to the PSE, who has to file a 1099-K instead of a 1099-MISC.

The 1099-K reporting requirements replace the 1099-MISC requirements.

The threshold for filing a 1099-K is different than the threshold we’re all used to for a 1099-MISC. Instead of a $600 threshold per Payer, the Payee will only receive a 1099-K if they earn over $20K and receive over 200 transactions in a year through Circuit.

So what does this mean?

•  Organizations no longer have to submit 1099-MISC forms for any payments they make via Circuit.
• Officials getting paid via Circuit will receive a 1099-K only if they earn over $20K and receive over 200 transactions in a year. If they earn less than $20k or receive less than 200 payments via Circuit in a year, they do not need to have any 1099-K or 1099-MISC forms filed.
• Note that if you continue to pay your officials with cash or check, the usual 1099-MISC reporting requirements apply for those payments (e.g. $600 threshold)
• Also note that Payees are still required to report all income earned to the IRS and pay taxes accordingly.

Please see our Terms for more details regarding tax requirements.

Additionally, here are some helpful reference points:
An excerpt from the 1099-K document that explains that if you file a 1099-K it replaces the need for a 1099-MISC - https://www.irs.gov/pub/irs-pdf/i1099k.pdf

Form 1099-K Payments made with a credit card or payment card and certain other types of payments, including third-party network transactions, must be reported on Form 1099-K by the payment settlement entity under section 6050W and are not subject to reporting on Form 1099-MISC. See the separate Instructions for Form 1099-K.

Useful articles that support the documents/excerpts above:
https://support.stripe.com/questions/1099-k-forms-issued-by-stripe
https://smallbiztrends.com/2015/01/1099-contractors-paypal-credit-card.html
https://payable.com/taxes/send-1099-misc-or-1099-k
https://payable.com/taxes/1099-filing-requirements