Correct. Every so often I get a discrepancy notice from the IRS, typically when a big case settled during the tax year and the settlement proceeds go through my client trust account. Regardless of whether I actually keep any of the proceeds, the insurer will 1099 me for the full amount. Usually clears up with a letter. One of the dumber aspects of this 1099 stuff is that lawyers get them for everything (box 14 on the form) but it is not necessary to send them to other businesses if the business is incorporated. So I don't 1099 AT&T, for example.
If you are going to claim to be a card selling business, be business-like. I have a resale permit and eBay store, I remit sales and use tax, maintain correct records of costs, file a Schedule C, etc.
Last edited by Exhibitman; 02-06-2018 at 01:49 PM.
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