@AmeliesUncle wrote:
@Opus 17 wrote:
As a consignment shop, you are providing a place for others to display their merchandise, you process the payments and keep a percentage and pay the rest to the owner. You are required to issue 1099s. (You are also required to collect your vendors' tax ID numbers using form W-9.)
Wouldn't it be the other way around? The Consignment Shop is RECEIVING money (via commissions), not paying money (they don't own the items). If the individuals' activity rose to the level of a business, the individuals would need to issue a 1099 to the Consignment Shop. Right?
The consignment shop is the one actually making the payments, so I would say the consignment shop must issue the 1099s. Conceivably, the consignor and consignee have to 1099 each other, under your argument. But the business that is actually making the payment is the consignee.
