1099 reporting by small business for payments made through PayPal

d908
New Community Member

If a small business makes payments to another business for $600 or more through paypal, do they have to issue a 1099, or does PayPal automatically do that for them?  Normally, the business making the payment through PayPal would have to issue a 1099, but I'm not sure how it works when payments are made through a third party such as PayPal.

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