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    3 Replies Latest reply on Jan 22, 2008 11:29 PM by web123

    Tax Reporting

    web123 Wayfarer
      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.
        • Re: Tax Reporting
          LUCKIEST Guide
          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
            • Re: Tax Reporting
              web123 Wayfarer
              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!
            • Re: Tax Reporting
              DomainDiva Ranger
              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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