Being issued a 1099 for vending at a competition.

Beer Belly BBQ · Feb 3, 2016

I recently received a 1099 in the mail from a contest I competed and vended at. My winnings were $150 and vending profits were around $625. This contest sold tokens to people and the people used them to purchase the food. The split was 60/40 with the 40% going back to the contest. I am understanding that since I purchased the food and served it while basically being charged 40% to do this I should not be getting a 1099 and reported to the irs as a subcontractor. I know I need to consult a tax pro on this but has anyone else had this happen to them? If my winnings were over $600 I understand the 1099 but not for me selling my goods.

IamMadMan · Feb 4, 2016

I too understand the 600.00 in services, but maybe they are calculating the gross before the split (625.00)??? I can't answer that....

However once the 1099 is issued, it is in the system electronically. You can be sure the IRS will want their share as well.

Beer Belly BBQ · Feb 4, 2016

I'm sure we will be getting a nice letter about it but I have plenty of expenses that will counter it. I just didn't want to go through the whole process of filing an amendment. I was mostly curious if others have ran into this or if it is just this contest trying to deduct as much as possible at the expense of the competitors. Also, they had a separate category for vendors only so its not like we were in a contract with them.

HBMTN · Feb 4, 2016

WOW 60-40 split :shocked: and then have the nerve to give you a 1099 on top of that. I'd be boiling if I were you.

landarc · Feb 4, 2016

It doesn't make sense, unfortunately, you will have to file the amendment anyway

Beer Belly BBQ · Feb 4, 2016

Oh I am pretty mad about the contest as a whole (there were 4 teams that landed on only two of the 5 judging tables). My wife worked for an accountants office for a few years and handled all the 1099's and is even more mad about it than I am. It's just one of a few reasons I will never go back. It's sad too because it is one of 3 contests in the state that's within driving distance for us.

landarc · Feb 4, 2016

That's weird too. How did they manage to mess that up?

Beer Belly BBQ · Feb 5, 2016

It's a weird story. The rep had a "fool proof" plan for the turn ins. Turns out it was predetermined where everyone's box was going regardless of turn in time. The whole thing is a cluster. There is more too it too but I wont get into that.

GlobalTJB · Feb 5, 2016

Write off everything you can related to the event. entry fee, wear and tear on your vehicle, mileage, food, charcoal, bottled water or beverages for the event, meat costs, spice costs, paper plate and utensil costs, napkins, a portion home electricity used to use the computer related to the event, hotel room if there was one, special equipment, depreciation on your equipment, etc. a 1099 is the golden brick road to write-offs and linking an expense to this in order to calculate your true profit is wide open as long as you can articulate it.

HBMTN · Feb 6, 2016

All in all though I appreciate this post. It has taught me never to allow any vendor otherwise to collect money and pay me in this manor.

Four20 · Feb 7, 2016

Next time file a W9 as an LLC or Sole Proprietorship Before competing for monetary value. Sam wants his or her cut. Always keep track of cost / service. Its simple math you always loose, but you don’t have to. Just get some liability insurance!

Being issued a 1099 for vending at a competition.

Beer Belly BBQ

Knows what a fatty is.

IamMadMan

somebody shut me the fark up.

Beer Belly BBQ

Knows what a fatty is.

HBMTN

is One Chatty Farker

landarc

somebody shut me the fark up.

Beer Belly BBQ

Knows what a fatty is.

landarc

somebody shut me the fark up.

Beer Belly BBQ

Knows what a fatty is.

GlobalTJB

Knows what a fatty is.

HBMTN

is One Chatty Farker

Four20

Found some matches.

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