how can they issue me a 1099 for a product they purchase from me to sell for profit? and they refuse to correct the matter. what should I do?
romed: someone didn't get the message, a few years ago it was legislated that all businesses would issue 1099's to the people they bought goods from in addition to the ones issued to people who performed services
this was going to be a bookkeeper's nightmare and before it was to actually be in effect the order was rescinded
you are the 2nd person to mention this and obviously those who issued it are not up on the rules
there are several 1099's so you need to know which one you were issued, an M is a report of income but unless you performed services for them it is of no effect
You need the 1099 to make certain that they do not tell the government that you gave them more or less money than you actually did!
The purchase orders have nothing to do with the 1099's!
They issued you a 1099 because they paid you money. They legally HAVE TO issue a 1099 to any company that is not a registered S or C corporation.
What the 1099 does is IT LETS YOU KNOW that the people who purchased something from you – are now declaring that expense on their corporate taxes. This allows you to review your files and see if you properly recorded that income on your books.
If the 1099 is issued for less than or more than what you received from that company, then you can call them to correct it. If the 1099 is for EXACTLY the amount that you received from that company last year, then you know that your accounting is correct, and you just put the 1099 in your vendor for for that company.
If you are still not sure what to do, just ask the person who does you tax return every year. They will take care of it. No worries.
Unless you are a corporation, they are required to issue you a 1099 if they paid you more than $600 in 2016…..reg