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1099 reporting of product given to influencers
September 26, 2024
Q. We are starting to give product (not cash) to influencers. Should we be issuing a 1099 for the market price of the product or our costs? If we sell the product to them at a discounted amount, do we need to send a 1099 for the difference between the market price and the discounted price?
A.
(Answered by IOFM's third-party tax experts)
In this situation your organization is effectively paying compensation in goods (your product) rather than cash to a nonemployee in exchange for services. The…
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