Are consignment-type sales ever 1099-reportable to the individual on whose behalf an item is sold?


1099-MISC forms are used to report payments for services, not merchandise. In general, if you sold merchandise on behalf of an individual and then paid him part or all of the proceeds, you would not supply a 1099-MISC. (It should be mentioned, however, that if you were paid for the service of selling the items, and this amount exceeded $600, then it's possible the individual might need to supply you with a 1099-MISC.)

However, to provide accurate information, we would need additional information concerning the nature of the consignment business relationship and what is being consigned.

Have more questions? Submit a request