Affiliate Tax Id's

irs tax id's for my affiliate program

[webeteran]

So I setup an inhouse affiliate program, and I want to be able to provide the affiliate earnings to the IRS. Well I think I have to because most affiliate program I see ask for a ss# and even provide forms. So what are some good starting points for setting up the ability to provide the earnings for affiliates based on ss#?

[treeline]

Ask them to fill out a form w-9. This is short but has all you need for the IRS. In most cases you don't need to report income until it reaches $600 for the year. (depending on how well you pay ;) )

[LifeinAsia]

So what are some good starting points

irs.gov
Specifically look over Pubs 15 and 15-A.

[webeteran]

Ha wow yeah that irs sure likes to be wordy.... I think I got through 10% of publication 15 and started to lose my focus. So step one make affiliates fill in a W-9, step two wait unil they exceed $600, then the next steps are what I am not clear on I guess I report earnings in that case?

[treeline]

Every January you send them a Form 1099 which says how much you paid them. The IRS gets a copy too, natch.

That's it, unless they're in trouble with the IRS somehow. Then you'll hear more.

[webeteran]

Oh ok great, nope i'm fine with them. I just wanted to be sure there weren't some steps I'm missing. That's very straightfoward thanks for your help guys. :)

[LifeinAsia]

Every January you send them a Form 1099 which says how much you paid them. The IRS gets a copy too, natch.

The 1099s need to be mailed to the recipients by the end of January, you have until the end of Feb. to send to the IRS.

You need to send the IRS a Form 1096 (due the end of Feb.) as well.

[decaff]

I believe April 2 is the deadline if you file the 1099s electronically to the IRS

[Sierra_Dad]

This seems to be talking about individuals as affiliates.

Let's say I have one affiliate, signed up by invitation. Let's say also that they are a much bigger company than me and they have actual marketing and accounting departments.

Does that change the situation appreciably? I guess they would still have a federal tax id, be it a corporate one. I just wonder if they would already have a procedure for dealing with this.

[TXGodzilla]

You do not have to send a 1099 to a corporation.

[Sierra_Dad]

You do not have to send a 1099 to a corporation.

That answers my question. Thanks.