[Jewelry making - Article 00046] - Re: [Orchid] Consignment and taxes

[M'lou Brubaker]

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    Galleries are supposed to send you a 1099 form if they pay you over
    a certain amount in a year. They need an ID number for this, either a
    federal tax ID number such as an Employer Identification Number, or
    your Social Security Number. This is done so that the IRS can check
    up on you and make sure that you are declaring that income, hence the
    need for a proper IRS number of some kind. If your other galleries
    have never sent you a request for this information, they either did
    not sell enough of your work in the year to reach the threshold where
    they are required to do this, or they were not compliant with IRS
    law. I have had 2 requests for this information in the past week from
    new customers. I gave them my SS#, since that is what is on my
    previously filed 1099 forms. So the request you got from the gallery
    sounds perfectly legit to me. 

    If this makes you uncomfortable, you might want to apply for an
    Employer Identification Number in the future. I don't think you
    actually have to have an employee to get one of these. But for this
    year, you will have to give them your SS#. Anyone...please correct me
    if I'm wrong on any of this, since I am no accountant. 

M'lou Brubaker, Jeweler
Goodland, MN
www.craftswomen.com

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