General Income Tax Information

Paparazzi is required by the IRS to issue a Form 1099 to all Consultants who have received $600 or more in commissions each year.

Consultants must ensure all information on their accounts is accurate. To ensure each 1099 is consistent with IRS records, the TIN (taxpayer identification number) on each Consultant’s account must be accurate and match the name on the account. For example, if a Consulant’s personal name is on the account, the TIN must be the Consultant’s SSN, not an EIN.

If this information is not correct, the IRS may assess a fine to Paparazzi, which will be passed on to the Consultant. A Consultant’s failure to pay the IRS fine will result in the cancellation of the Consultant’s account. Inaccurate information (TIN, name, birth date, etc.) may also jeopardize the Consultant’s account.

As independent contractors, Consultants should keep their own business records for expenses, sales, commissions, etc., for income tax purposes.