All sales made using BizX dollars are reported to the IRS as well as to each member with form 1099-B, Proceeds from Broker and Barter Exchange Transactions.
The IRS requires BizX to be a third party record keeper and therefore report all taxable BizX income made by each member to the IRS. BizX also mails a form 1099-B, prior to February 1st of the following year, which provides each member with their total annual BizX sales for the calendar year. The total BizX sales figure provided on the 1099-B should then be reported by the member to the IRS as taxable income at an equivalent rate to cash.
If a member does not make a sale in the year they will not receive a 1099-B. For BizX members with a social security number type tax id on file with BizX, a 1099-B will be issued for each individual sale, per IRS regulations.
If your Federal Tax ID has changed from the previous year, please contact the BizXchange accounting department at email@example.com immediately to provide a new W-9 so we can update our tax records accordingly.
Perks Accounts and Taxes
For members with employee perks accounts, each perks account can be set up under the recipient’s name and social security number so that individual can directly receive their 1099-B for all the BizX they earned throughout the calendar year.
If the business chooses to have the employee’s perks account be processed through their own payroll, we can set-up the perks accounts to not receive a 1099-B.