CCbill tax question

Ok, so I need to report CCbill income. I never did receive 1099s from my CCbill sponsors probably because I didn't have the box checked to allow my information to be viewed by sponsors. I've corrected that now.

Does anyone know how I should report this income? By each affiliate program or can I lump it all together? Do I report it by check date? If so, the check stats don't brek it down by sponsor. If I run my stats for the year, then i'm not reporting my income accurately because the check dates are different than sale dates.

Btw, if I haven't received 1099s, does that mean the IRS has no record of my CCbill income? Hmmm.

Xstr8guy,

If they don't issue a 1099 I'd guess the IRS doesn't know about it.....but then, your luck and mine.....they (CCBill) will get audited and then we'd have to pay plus penalties and interest.

Would seem to me that you could lump it all together. The IRS doesn't give a damn what you call it, as long as you report it!!!

Hugs,

Bill

PS

LOVE YOUR BANNER!!!!! Thanks!

Thanks Bill. That's exactly what I thought... better to report it than get audited. :(

I think that's really the key and the best way to be on the safe (and legal!) side.

Whether or not you get 1099'ed, keep track of your income from whatever sources and declare it all when it comes time to do so.

Quote:

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Originally Posted by hdkbill

If they don't issue a 1099 I'd guess the IRS doesn't know about it.....but then, your luck and mine.....they (CCBill) will get audited and then we'd have to pay plus penalties and interest.

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As the FILER of the 1099, a sponsor would pay all penalties when there is wrongdoing. As the PAYEES, we webmasters would not be responsible for paying for their mistakes unless the IRS decides to audit you as well and determine that you didn't pay appropriate taxes.

The sponsor could politely ask that you provide proof of your tax payments, and they would be exempt from paying that portion in the penalty. But whatever a webmaster doesn't pay, the company responsible for sumbitting 1099's is the company that gets the tax bill, not the payees.

It would take hundreds of individual audits for that to happen, and that is a waste of the IRS's time. They just go after the big money.

EDIT: oh wait... I might be thinking of that provision where a person is paid as an independent and not an employee... but I think this still pertains. The 1099 filer pays the penalty, not the receiver unless they are personally audited.

well... the interesting issue here is that the sponsor never sees the money paid to an affiliate by a CCBill program, receives no accounting from CCBill which would allow creation of 1099s (granted, it would be possible to generate reports of this, but with only limited data)

Our understanding is that we are not responsible for 1099ing affiliates on moneys we never received or paid out. Of course, since we switched to NATS and make our payouts directly, all of our affiliates receive 1099s for any payments made to them in excess of $600 per year.

But anyone who avoids reporting of income from affiliate sales through ccbill is asking for trouble. Either your bank or CCBill could easily document the monies paid out, and you'd be SOL.

I sure wish CCbill would come in here and explain some things. It sounds to me like they are in a potentially dangerous position here.

Well im actually going to make a start on at least trying to get 1099 info from around 120 affiliates next month who have made well over the $600 mark on Condom Cash in the last year and based on last years tax experiences its going to be pretty difficult to get that information :(

Regards,

Lee

When someone signs up to be an affiliate, couldn't you require they provide the necessary 1099 information in order to be a member of your program? I would even go so far as to require your current affiliates to provide this information if they want to continue in your program. You are only doing what is right and required by law. I wouldn't risk an audit from the IRS because someone else may not want to pay their taxes. CYA

Donnie

When you sign up as an affiliate through ccbill you have the option of "Let webmaster see your address"

If they made it so and not just an option - it would help out some.

using ccbill

When I make a sale for whatever ccbill site.
the site owner is not getting paid the full amount and then sends me my 50%.
the site owner is getting his 50% and should report that.

I still should report my income. But I don't see why I should get 1099 from site owners except when they use affiliate scripts that allows them to get all the money and then send me my cut.

That's how I see it.

I dont think it is the site owners responsibiltiy to give the 1099. I, and my accountant, think that would fall on CCBill. CCBill is handeling every aspect of the transaction, and as such, is the responsible party. But I plan to go back and read my contract with them.

I think if you simply report your income, even on your 1040 as Misc. Income, you would be protected from any penalties, etc should there ever be an audit. But I would love to hear CCBills and a real lawyers take on this.