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1099NEC

mcd1231
Level 4

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 ???

0 Cheers
4 Comments 4
Just-Lisa-Now-
Level 15
Level 15

"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♥¸¸.•*¨*•♫♪
mcd1231
Level 4

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

GodFather
Level 8

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

qbteachmt
Level 15

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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