Publish Date: Thursday, April 08, 2004
We have been informed by Avalon Accounting, the accounting company responsible for receiving all W-9 forms from our US web hosting resellers, that the 1099 form is sent when the amount of received commissions exceeds $600 (six hundred USD). If the amount of received commissions is less than $600, then a 1099 form is NOT sent to the individual or the company, who have filed the W-9 form. Specifically for the past 2003, this concerns checks and bank transfers (wires), which have reached your accounts during the period from January 1 to December 31, 2003.
The date of check or the bank transfer does not matter. The date when you cashed the check and/or the date when the transfer money has actually reached your account are taken into consideration. For example, if you have received a check for $450 dollars, which had been issued on December 6, 2003 and you have submitted it to your bank on December 28, 2003, but the money has shown on your account balance on January 2, 2004, then you should include this income in your tax statement for 2004, not in your tax statement for 2003.
We advise all resellers who have received reseller commission amounts of less than $600.00 total for 2003 to include this income in the 'Miscellaneous' column on their financial/tax reports.
We apologize for not making this clarification in a more timely manner and hope that this information would be useful to you.
