I'm in the process of setting up an in-house 10-tier pay-per-sale affiliate program for our site but before I make it Live I was hoping to get all the legal/tax information about running it.
First off, I'm in the US. From what I've read in the past, you aren't necessarily required to report affiliate payments unless the affiliate makes more than ~$700 in the year. If that figure is reached you have to report it on your taxes and issue the affiliate a 1099-MISC form so they can report the income in their taxes. Is there any truth to this?
I was hoping you guys might know of a site/sites that explain the details on this. I know I can find the info at the IRS and probably my state's (TN) revenue site but I'm not too good at trying to decypher legal text. Any help?
Thanks !  |
