We sold a product to a customer, who in turn sold it to his employee. We issued a good-customer discount to the employee and sent a refund check. Does this require a 1099 to the employee? What if the employee bought the product directly from us?

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No, the check represents a discount or rebate, and not a payment for services. It is not reportable.  We confirmed this with IRS information reporting specialist Ms. Pasiuk, ID# 1000207844.

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