I'll Take That...Thanks Humana...........

[sshafran]

"cash basis" or whatever it doesn't matter it's a wash.
I pay $1,000 in marketing. That's a "deduction." Humana pays me $1,000 (call it reimbursement or commission, 1099 or not, doesn't matter either) it simply offsets the $1000 I spent, making it look like I spent $0.

At least for my S-Corp I don't think it really matters how they classify it.

My CPA never sees the 1099s. She sees cash in/out and classifies everything accordingly.

 

[somarco]

"cash basis" or whatever it doesn't matter it's a wash.
I pay $1,000 in marketing. That's a "deduction." Humana pays me $1,000 (call it reimbursement or commission, 1099 or not, doesn't matter either) it simply offsets the $1000 I spent, making it look like I spent $0.

At least for my S-Corp I don't think it really matters how they classify it.

My CPA never sees the 1099s. She sees cash in/out and classifies everything accordingly.

Point is, Donnie claims he gets all his "marketing" for free. Mailers, leads, etc so either he has $0 marketing costs and $1,000 taxable (no matter how they code it), the money is still (presumably) flowing through his bank account.

The IRS wants to know how your expenditures are allocated. Mileage allowance has a different write off from meals, and meals have a different write off from advertising.

Unless you are all cash without a paper trail (which the IRS loves). Federal tax returns (S corp, C corp, 1040, etc have "boxes" to classify income and expenses.

That doesn't mean a person or entity won't try and hide income (or inflate expenses), but earned income is taxable unless you have ways to offset the income with expenses.

Your CPA may never see your 1099 but the Treasury does and if the 1099 totals don't closely match your bank receipts you will get a notice. My CPA never asks for receipts but he does ask for bank and bookkeeping records to calculate the P&L and segregate the legitimate business deductions.

 

[Midlevel]

This post started with poor Russ excited like a kid on Xmas morning that he got 1000.00 from a Company he placed business with. Thanked them and told them Merry Christmas. Now it’s nothing but a couple scrooges who can’t get along but yet can’t just put each other on ignore and go on with their lives. Merry Christmas everyone, even DonP and Somarco.

 

[sshafran]

"cash basis" or whatever it doesn't matter it's a wash.
I pay $1,000 in marketing. That's a "deduction." Humana pays me $1,000 (call it reimbursement or commission, 1099 or not, doesn't matter either) it simply offsets the $1000 I spent, making it look like I spent $0.

At least for my S-Corp I don't think it really matters how they classify it.

My CPA never sees the 1099s. She sees cash in/out and classifies everything accordingly.

I should have said cash accounting method, not cash basis.

 

[DonP]

Somarco your correct I pay zip for leads . I report all 1099 income as I’m a sole proprietor. That’s my duty as a tax payer . I’ll report nothing else . That’s like saying I’m supposed to report the company trip I win they don’t 1099 me on . What about when I sell something for more than I paid for it . Should I report it ? If they find it fine I’ll pay the taxes .

 

[NewbieNewbie]

Somarco your correct I pay zip for leads . I report all 1099 income as I’m a sole proprietor. That’s my duty as a tax payer . I’ll report nothing else . That’s like saying I’m supposed to report the company trip I win they don’t 1099 me on . What about when I sell something for more than I paid for it . Should I report it ? If they find it fine I’ll pay the taxes .

Well to be fair if it is a house I would say yes.

 

[Todd King]

Somarco your correct I pay zip for leads . I report all 1099 income as I’m a sole proprietor. That’s my duty as a tax payer . I’ll report nothing else . That’s like saying I’m supposed to report the company trip I win they don’t 1099 me on . What about when I sell something for more than I paid for it . Should I report it ? If they find it fine I’ll pay the taxes .

LOL....you do get 1099'd for most trips. They don't 1099 you separately for that though. Since the companies also use a travel service for everything they do, you're actually getting 1099'd on more than you would have had to pay for the trip itself.

I can only know of a few exceptions. RNA is one of them that don't 1099 you for the trip. Can't think of some of the others right now, but I'm sure there are more than I'm aware of.

 

[PCBI]

Woke up this morning and checked my checking account. Surprised to see a $1,000 commission check from Humana. Not new business...a bonus. Thanks Humana and Merry Christmas!

Think they’ll bonus me from all my work in 2005 they keep making me get certified AHIP just to be paid renewals? Lol

 

[somarco]

Northwestern Mutual agents used to complain (and probably still do) about how they were given a 1009 for almost everything . . . including the "free trips" . . .

 

[Russ]

The $1,000 showed up in my weekly commission statement with Humana as "non-tax reimbursement"