Taxes
There are no tax advantages or disadvantages to BizX.
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Sales Tax: When you spend, sales tax is paid in BizX. When you sell, you then collect the sales tax in BizX and pay the government in cash. - Income Tax: Report all sales as income via the 1099B. All purchases would be expensed, just as you would any cash expense.
Federal Tax IDs
The IRS requires BizX to be a third party record keeper and therefore report all taxable BizX income made by each member to the IRS. In order to do this, we need your Federal ID number.
BizX mails a form 1099-B, prior to February 1st of the following year, which provides each member with their total annual BizX sales for the calendar year. The total BizX sales figure provided on the 1099-B should then be reported by the member to the IRS as taxable income at an equivalent rate to cash.
Some Perks Accounts are not required to give us their Federal ID and therefore we will not send a 1099B. In order for this to happen, the Parent Account has to agree to report all taxable transfers to the IRS.
1099-B Information
All sales made using BizX dollars are reported to the IRS as well as to each member with form 1099-B, Proceeds from Broker and Barter Exchange Transactions.
The IRS requires BizX to be a third party record keeper and therefore report all taxable BizX income made by each member to the IRS. BizX also mails a form 1099-B, prior to February 1st of the following year, which provides each member with their total annual BizX sales for the calendar year. The total BizX sales figure provided on the 1099-B should then be reported by the member to the IRS as taxable income at an equivalent rate to cash.
If a member does not make a sale in the year they will not receive a 1099-B. For BizX members with a social security number type tax id on file with BizX, a 1099-B will be issued for each individual sale, per IRS regulations.
When you receive your 1099-B, please review the document for accuracy. If there is an error with your business' legal name, address, or ownership type, you can correct it on the IRS Reporting page of the BizX Marketplace, here: https://my.bizx.com/MyProfile/IRSReporting
If your Federal Tax ID has changed from the previous year, please contact the BizX accounting department at help@bizx.com immediately to provide a new W-9 so we can update our tax records accordingly. Depending on the type of change, we may need you to open a new account and transfer all of your funds.