1099 reporting of referral commissions
Q. If a customer of ours refers our services to a new customer, they would receive an incentive or commission for the referral of $50 for each referral. Is that reportable as income for a 1099?
(Answered by a 3rd party, independent advisory services firm offering experienced and practical help for tax regulatory compliance for Forms W-9, W-8, W-2, 1099, 1098, 5498, 945, 1042, 1042-S, and state reporting.)
Yes, if the total paid to a payee in the calendar year is $600 or more and the payee is…
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