While not mentioned in the analysis, these Chief Counsel Advices are arguably consistent with prior IRS guidance. For example, the IRS previously had opined that, when a manufacturer pays a bonus to salespeople working for a retailer to get them to "push" its products, the bonus is not wages because it is being paid by a third party that is not the salesperson's employer. As such, the payments are income to the salespersons, but not subject to income tax withholdings or employment taxes.12
12 This is commonly called "push money." See, e.g., Rev. Rul. 70-337,1970-1 CB 191; Rev. Rul. 70-331,1970-1 CB 14.
my reference material indicates that rev rul 70-337 is still in effect. however, I was unsuccessful in finding it on the internet. the rev rul dealt with Spiffs received by an auto salesman from the manufacturer regardless of whether received directly or through the dealership.
the reasoning is that the salesman was not an employee of the manufacturer,
i agree a pro might be best but it you want to go-it-alone get a letter from the manufacturer spelling out you are not their employee and were merely renumerated for pushing their product.
then cite the above references.
also note there are other threads from earlier years on this forum that come to the same conclusion that Spiffs from third parties are not SE income.
http://landeirocpa.com/IRS_forms/p3204.pdf
if you-go-it-alone you might want to print this out and highlight the part about the income not being subject to SE-tax. though it's for auto salesmen, the same logic should apply to your situation.
