Reporting Payments to Vendors and/or Third Parties Does your business issue payments to third parties via check or cash for services, non-employee compensation, rent or other items? If so, you will want to make sure you comply with the annual reporting requirements outlined by the IRS or you risk losing the ability to deduct those payments as a business expense on your entity's tax return. This reporting requirement, often referred to as "1099 reporting", is an annual filin