Bank transactions type causing 1099 not to be created. How do I bypass

That depends on the exact details of your situation, but it sounds like you're talking about sending electronic payments to a 1099-worker.

If that is the case, QuickBooks is almost certainly doing what it should be doing.

Generally, to send an electronic payment to a 1099 worker (A self-employed person, someone who owns their own business), they will need to have a business account set up with a merchant provider (Paypal, et cetera).

When that is the case, electronic payments will generally end up on what's called a 1099-K. This form is issued by merchant providers to their customers for the payments sent through their system, and summarizes said income for the year.

If you were to turn around and send in your own 1099 to your 1099 worker for the same amount, you would effectively be overstating their income for the year, reporting payments made to them that are already being reported on another form.

Hello there, Marcie. I'm here to help you with your 1099 forms and get you pointed in the right direction. 

When preparing 1099 forms, the IRS requires 1099 filers to exclude any payments made to a 1099 vendor by credit card, debit card, gift card, or a third-party payment network such as PayPal from Form 1099-MISC. Certain payments made to contractors must be reported on the 1099-K forms by the credit card company instead of the 1099-MISC or 1099-NEC forms. To understand the excluded payments in more detail, you can have a look at this guide: Understand which payments are excluded from a 1099-NEC and 1099-MISC. 

Alternatively, you can consult with a tax professional or visit the IRS website to verify if you need to include the amount as one of the reportable payments.

On the other hand, if you want to report them in the 1099 forms so your contractors can view them on their forms once you file them, you can exclude these bank transactions showing in your bank feeds and create a manual check. You can follow the steps below to exclude these transactions:

1. Go to Transactions, then select Bank Transactions.
2. Locate and select the transactions you want to show on the 1099 form in the For Review tab, then click Exclude.

Once done, create a check for these transactions. Make sure to utilize the expense accounts that are reportable in the forms. Here's how:

1. Click the +New button, then select Check.
2. Select the Payee (Contractor's name) and the Bank Account.
3. In the Category field, select an expense account, then enter the amount.
4. Select Save and Close.

Moreover, here are some resources you can read to know who you need to file 1099s for and how to prepare and file them within the program:

• IRS guidelines for 1099.
• Create and file 1099s with QuickBooks Online.
• Understand payment categories for the 1099-MISC and 1099-NEC.

You can return here in the thread for further clarification and information about the 1099 forms. I'll be right here to respond to them. Have a good one!