Agencies and institutions of higher education are not required to issue IRS Form 1099-MISC for third-party reimbursement payments made with a credit card. As a payment settlement entity (PSE), Citibank N.A. is required to file IRS Form 1099-K for payments made in settlement of reportable payment transactions. Therefore, third-party reimbursement transactions entered in USAS should not generate an additional reportable payment.
Effective March 1, USAS will no longer allow a value to be entered in the 1099 indicator field for transactions using T-codes 247 and 264. Payments to Citibank processed in USAS before March 1 that generated an IRS form 1099-MISC will require cancellation of the form.
See USAS Procedures for 1099 Reporting (FPP E.001) for reporting details. Contact Expenditure Assistance at (512) 475-0966 for questions.