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Advance commission payments
January 10, 2023
Q. Would an advance commission payment be 1099 reportable? We paid the commission upfront in tax year 2022 and will reduce the monthly commission due in 2023 until the advance is repaid. Would we report the full payment in 2022 and not report the commissions that are applied against the advance in 2023?
A.
(Answered by IOFM's third-party tax experts)
Yes, that is correct. The amount actually paid in calendar year 2022 is reported on the Form 1099 for 2022, because the recipient had actual…
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