mcd1231
Level 4
‎02-28-2023 10:28 AM

Good morning:

This is my first time having a client who sells Avon.  She received a 1099 NEC with $0.00 in box 1 (non-employee compensation).  Box 2 is checked: Payer made direct sales totaling more than $5,000 or more of consumer products to recipient for resale.  At the bottom of the 10999 NEC there is a section which indicates the form was not filed with the IRS.  

Do I ask her for all her sales and expense documents and file a Schedule C or ???

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Just-Lisa-Now-
Level 15
Level 15
‎02-28-2023 10:34 AM

"Do I ask her for all her sales and expense documents and file a Schedule C "

I would, she may just be buying products for her own use and not actually selling to other people, but you wont know until you ask.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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mcd1231
Level 4
‎02-28-2023 10:45 AM

So if she is selling to others, I will go ahead and file Sch C.

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GodFather
Level 8
‎02-28-2023 12:18 PM

Yes...if she is selling to others, go Schedule C.  She should provide you with her income and expenses.  That would populate Schedule C.

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qbteachmt
Level 15
‎02-28-2023 03:31 PM

If that is personal use, then she should not be buying wholesale. There might be a use tax consideration, in this scenario.

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