Should I check "I made direct sales of $5k of products to recipient for resale" if I don't know if my client is reselling the product when filling out info for 1099-NEC?

I pay a printer to print postcard-esque materials I design for my clients. My clients are generally management agencies who then sometimes charge their talent for those printed materials . (ie. They buy 50 cards from me for $50 but deduct $75 from their talents' payouts.) However, I don't know which agencies "resale" my product and which don't. Or even if that is considered a "resale" at all? I'm adding a 1099-NEC for several of the agencies I work with but unsure if I should check the box for "having sales of 5k of consumer products to recipient for resale"?

459

Level 8

Apr 14, 2022 6:46:10 AM

You need to know whether they are re-selling an item by the time you sell it to them for sales tax purposes. Determines whether you need to collect and file or not.

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Should I check "I made direct sales of $5k of products to recipient for resale" if I don't know if my client is reselling the product when filling out info for 1099-NEC?