Yes, the entity responsible for filing Form 1099-K can contract with a third party to prepare and file these returns. However, the entity that submits the instructions to transfer funds remains liable for any applicable penalties under IRC 6721 (Failure To File Correct Information Returns) and IRC 6722 (Failure To Furnish Correct Payee Statements) if the reporting requirements are not met. Additionally, the name, address, and Taxpayer Identification Number of the entity responsible for filing must be reported on Form 1099-K in the box for the filer's information.
Sources:
Publication 1220 (9/2023)
Rev. Proc. 2023-29
FS-2024-3
FS-2023-6
Publication 5316 (11/2023)
IRS FAQ