Why we don't issue 1099's to our vendors

As it is general knowledge of the tax law, “you must issue a Form 1099-MISC to each person to whom you have paid at least $600 in rents, services (including parts and materials), prizes and awards, or other income payments.”

Why The Brass Lantern Does Not Issue 1099's

The Brass Lantern takes in rental income (commissions) from our vendors, we do not pay rent to our vendors. We provide a service for our vendors giving you an incredible environment to do business in every day. You don’t work for us, we work for you. 

As part of our services, we record and issue payouts to our vendors every month. These payout constitute money owed to our vendors for each monthly payment period for profits as "payment for merchandise." Which is why we do not 1099-MISC form our vendors. 

As The Current TN TAX Law Reads:

Payments for which a Form 1099-MISC is not required include all of the following...

Payments for merchandise, telegrams, telephone, freight, storage, and similar items. “

Again, our payments to our vendors contain  "payments for merchandise" only therefore these payments are not required to be reported. 

However, you as a vendor ARE responsible for your own tax reporting to the IRS. How you should execute this should be a conversation with your CPA or tax professional. 

For reporting purposes, The Brass Lantern offices can issue out a vendor's account activity by payment period if requested   for tax reconciliation purposes. These documents come in the form of a Monthly Settlement Report and Financial Summary Report for your records.

For increased understanding, all your sales data can be found on your consignor access portal.