Results 1 to 8 of 8
  1. #1
    Full Member
    Join Date
    January 18th, 2005
    Posts
    439
    If you are a sole proprietor and you are expecting a 1099-MISC from a BeFree merchant you should probably follow up with the merchant as BeFree tell me they accidentally didn't include sole proprietors in their 1099 reporting to merchants.

    If you just ignore it and dont report the income you will probably get a nasty letter from the IRS when the merchant realizes their mistake.

    If you do report it without a corresponding 1099 and the merchant later sends a 1099 you will have to change and resubmit your tax return

    Overall its probably best to chase up any merchants who paid you more than $600 last year to get a 1099.

    Mark Mitford
    RevShares.com
    Solutions for Affiliate Program Managers

  2. #2
    ABW Ambassador
    Join Date
    January 18th, 2005
    Posts
    2,118
    quote:
    If you do report it without a corresponding 1099 and the merchant later sends a 1099 you will have to change and resubmit your tax return


    There is no reason you would have to resubmit a tax return unless you under-report your income.

  3. #3
    ABW Ambassador Jane's Avatar
    Join Date
    January 18th, 2005
    Posts
    1,350
    These 1099's are a pain in the @ss. It is much easier faster to write total income than to have to separate it all. Wish they would not require 1099's for checks written to a business.

  4. #4
    Full Member
    Join Date
    January 18th, 2005
    Posts
    439
    Jimbo: what I meant was unless you correct your tax return to move the money from other income to a 1099 the IRS will likely spot the "missing" 1099 and send you a letter asking for an explanation, if you are unlucky it may even get you audited.

    Mark Mitford
    RevShares.com
    Solutions for Affiliate Program Managers

  5. #5
    Member
    Join Date
    January 17th, 2005
    Location
    Colorado
    Posts
    78
    Is BeFree responsible for sending the 1099s or are the individual merchants???

    The reason I'm asking is I had an interesting chat with an particular company that had used BeFree for the past 4 years, in that time they never generated a 1099 for their affiliates, they claim it is BeFree's responsibility since they cut the checks. I generated over $600 in commissions with them and tried to find out where my 1099 was, they claim BeFree should have sent it.

    However, it has been my personal experience the past 4 years that once you clear the $600 mark the individual merchants send you a 1099. I've never received a consolidated one like linkshare does.

    For now I'm reporting their income in that "other" income category on my taxes since it doesn't sound like I won't be getting a 1099 from them anytime soon, but I would like to follow up with this company and point them in the right direction.

    Thanks!!

  6. #6
    Moderator MichaelColey's Avatar
    Join Date
    January 18th, 2005
    Location
    Mansfield, TX
    Posts
    16,232
    BeFree is really an oddball when it comes to 1099's. They cut the checks, but they print the checks in such a way that it looks like the checks come from the merchant.

    BeFree probably SHOULD be the party responsible for sending the 1099's since they send the checks, but they push it off to the merchants. I think BeFree provides the merchants with a report that will show which affiliates need to receive 1099's.

    Michael Coley
    Amazing-Bargains.com

  7. #7
    ABW Ambassador
    Join Date
    January 18th, 2005
    Location
    Nunya, Business
    Posts
    23,684
    All i do is hand my accountant all th 1099's i get and from the rest of the BF merchants just total it up and that's all my accountant needs.

    I work in lounge pants

  8. #8
    Full Member
    Join Date
    January 18th, 2005
    Posts
    372
    quote:
    If you just ignore it and dont report the income you will probably get a nasty letter from the IRS when the merchant realizes their mistake. If you do report it without a corresponding 1099 and the merchant later sends a 1099 you will have to change and resubmit your tax return


    Don't know how likely that is. There are major penalties for late 1099s. Most merchants would probably just not send them than have to pay the penalties.

  9. Newsletter Signup

+ Reply to Thread

Similar Threads

  1. Linkshare Report a Missing Payment is missing!
    By jodyq in forum Rakuten LinkShare - LS
    Replies: 1
    Last Post: December 26th, 2008, 10:35 PM
  2. Many NO musicians missing! Fats Domino missing!
    By SSanf in forum Midnight Cafe'
    Replies: 2
    Last Post: September 1st, 2005, 01:40 PM
  3. Missing 1099 Forms
    By tlemke in forum Midnight Cafe'
    Replies: 5
    Last Post: February 23rd, 2003, 04:16 PM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •