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  1. #1
    ABW Ambassador netnow22's Avatar
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    Question CashBack/Rebates Sites
    I was think of starting a cash back site. Does anyone have any sugggestions or unforseen problems that may arise for this kind of site? Also how does the irs feel about our company giving cash back to our customers. Do i have to report the commission paid to my customers?

  2. #2
    ABW Ambassador netnow22's Avatar
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    ?

  3. #3
    Marketing Mistress Lectrickitty's Avatar
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    The IRS isn't interested. They take the attitude that a person has already paid tax on that money. They consider it overpaying for an item and getting back the extra money.

    Now if a third party is involved, they might get interested. I'd have to look that one up before making a call on it.
    [color=blue]"Those who give up their freedom for a little security deserve neither freedom nor security" - Benjamin Franklin[/color]

  4. #4
    Resident Genius and Staunch Capitalist Leader's Avatar
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    Do i have to report the commission paid to my customers?
    You don't "have to." But you definitely SHOULD report it--it's in your best interest. It's a business expense.

    Networks/indies will report ALL the commission they pay out to you regardless of what you do with it. So, if you don't take off the reβates you pay out as a business expense of your own, you'll have to pay taxes on the whole thing!
    There is no knowledge that is not power. ~Hemingway

  5. #5
    ABW Ambassador netnow22's Avatar
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    Thanks leader and Kitty!

    That helps a great deal

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