When it comes to taxes, it seems everyone does things a little differently. Some file things themselves, some use a software system, and some hire an accountant. Even each accountant seems to have his or her own way of doing things. When it comes to providing the IRS with the correct tax information you can do things in a few ways.
- Keep track of your sales, rent, and fees yourself using the payout report that comes with each bi-weekly payout. Add up all the reports for the year and report your sales and expenses to the IRS.
- If you would prefer, we can provide a document to you with your sales, rent, and fees for the tax year upon request. We call it the Merchant Financial Summary Report.
After much study and many conversations with different accountants and tax professionals, we want to provide a detailed explanation as to why we will not provide 1099’s to merchants.
As a general rule, “you must issue a Form 1099-MISC to each person to whom you have paid at least $600 in rents, services (including parts and materials), prizes and awards, or other income payments.” In this case, Belleville Market does not pay rent to merchants, you pay rent to us. Belleville Market provides a service to our merchants (You don’t work for us, we work for you!). Belleville Market does not give out prizes or rewards, but we do payout for merchandise sold every two weeks. This often leads to confusion as it seems to fit into the “Other income” category. A careful reading of the 1099 MISC specific instructions from the IRS website found at https://www.irs.gov/forms-pubs/about-form-1099-misc, reveals a list of exceptions:
“Exceptions.
Some payments do not have to be reported on Form 1099-MISC, although they may be taxable to the recipient. Payments for which a Form 1099-MISC is not required include all of the following: Payments for merchandise, telegrams, telephone, freight, storage, and similar items."
Belleville Market's payments to merchants at payout constitute payments for merchandise, therefore these payments do not have to be reported on a 1099. This does not mean merchants are not responsible for reporting their sales or income to the IRS. How you report your sales revenue is conversation each merchant should have with their tax professional. We provide the payout reports so that you can report all the relevant information on your taxes.
As with much of the tax code, this topic can be a confusing one, which is why many markets do things in many ways. Furthermore, all the material prepared above is for general information purposes only and does not constitute legal or tax advice.
Related Articles
General Information About Electronic Payouts
Belleville Market processes payouts on a bi-weekly schedule. Payouts are processed by 5pm on the 3rd day following the published sales period If the 3rd day falls on a holiday, the payout may be processed by 5pm on the following business day Merchant ...
Employee/Merchant Discount Program Information & Enrollment Form
Introducing, the Belleville Employee Merchant Discount Program. Firstly, please note that this program is completely optional and Merchants have no obligation to participate. With that, if you'd like to participate, here are the guidelines: Discount ...
How long will it take to receive my funds?
Please reference your original payment email and click on the button labeled "Click here to view deposit options." Once you select your deposit option, this screen will show the date you should see the funds in your account. If you are using the ...
How to find my Routing and Account Numbers?
You can find your accurate routing and account number at the bottom of a check from your paper checkbook. (Note: some checks may have the check number as the first or second set of numbers; however, the routing is always before the account number) ...
Getting In Touch
The Belleville Market management team does our best to always be available and accessible to you, our merchants. To better serve you, we've now established a single number for you to reach us via phone or text message. We collectively ask that you ...