Tax Law (Questions About Taxes)/1099's


consignmentstoreowner wrote at 2013-01-10 22:07:39
I confirmed this answer today with the IRS.  I just got off the phone and was told that is considered a merchandise sale not a service so there is no 1099 MISC required, even if the amount is over $600.  You are essentially purchasing the items from the consigner but you are not paying for them until they sell. The agent I spoke to was named Kerns ID#2856258.  I reached her at 866-455-7438.

Note:  I did call this number and got a different answer from another agent about a week earlier, but I am convinced by the IRS instructions and what the current agent told me that you do not have to issue a 1099 MISC.  

Tax Law (Questions About Taxes)

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Chea Romine, CPA


I am a CPA and Managing Partner of a medium sized CPA firm. I specialize in all areas of tax including personal, partnership, corporate, trust, estate and non-profit. We prepare over 1000 returns each year in a wide range of industries and complexities. We have multiple CPA's in the office that also bring insight or expertise into the questions. I also manage our accounting division and our business consultation division.


Managing Partner of a medium sized CPA firm with 6 CPA's and other support staff.

AICPA Ohio Society of CPAs National Society of Tax Professionals

Certified Public Accountant

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