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3 Replies Last post: Jan 22, 2008 11:29 PM by web123

Tax Reporting

Jan 22, 2008 12:11 AM

web123 9 posts since
Jan 22, 2008

Hello to all,

I am planning on starting a new online marketing business where it generates leads for advertisers. This is an incentive-based marketing where the customer receives gfit/money for becoming a member. Now, I heard that if the gift/money given to the customer is worth more than $600, this information must be reported to the IRS? My question is, how do I report this and what information/form would I need from the customer(s)?

Thanks for your advise.

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LUCKIEST 7,926 posts since
Aug 6, 2007

1. Re: Tax Reporting Jan 22, 2008 8:20 AM

123, Welcome to this website. Yes amounts over $600 must be reported on Form 1099.
This is a new business you WILL be starting so nothing is due for year 2007.
In 2008, you will need Customers or members Name, Address, Social Security Number and
amount of gift / money given.
1099 should be filed in January of 2009 for the year 2008.
Do you have a Business Name?? Federal I D Number?? An Accountant??
One more suggestion, on Members page add A few words about you and your business.
Good luck, LUCKIEST

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DomainDiva 1,731 posts since
Oct 10, 2007

2. Re: Tax Reporting Jan 22, 2008 12:45 PM

Since you will require some sensitive pesonal info (SS#) you will need some sort of site security and a plan to protect that information.

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web123 9 posts since
Jan 22, 2008

3. Re: Tax Reporting Jan 22, 2008 11:29 PM

in response to: LUCKIEST

So "Luckiest," I would simply fill out each individual form 1099's for each customer and mail it to the IRS at the end of the year? Also, is there any easier way to notify the IRS...electronically in bulk form? Also, I should only NOTIFY, not PAY the IRS for the amount? Is that right? Thanks!

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ForumsTaxes and Payroll

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Tax Reporting

Jan 22, 2008 12:11 AM

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