Jens Avon Updates!

A resouceful blog for my unit!

The 411 on Your 1099

on January 7, 2012

I have just received this update on who will receive a 1099 from Avon this tax season. Here is the email I received.

Tax time is fast approaching. Here are answers to some of the most common questions to help you prepare. Note: Each individual’s circumstances will vary, and you may want to consult your local IRS office or a tax expert for specific details.

Q: What is a 1099 form?
A: A 1099 is a tax form sent to Representatives who, in a single year, have purchased $5,000 or more in merchandise or who have earned prizes, awards, recommendation earnings or other bonuses valued at $600 or more. Avon is also required by law to send a copy of the 1099 form to the IRS.

Q: When will I receive my 2011 1099 form?
A: Representatives who meet the above requirements are sent their 1099 forms by January 31. They should be received by February 15. If you qualify for the form and do not receive it by that date, please call a Customer Care Specialist. If our records have an incorrect mailing address for you, the Customer Care Specialist will update our records and ask you to call a toll-free number to the Avon Accounts Payable Department.

Q: Should I file an income tax return?
A: Since you are self-employed, you must file a federal tax return and pay self-employment tax, if you had net earnings—the amount after your business expenses have been deducted—of $400 or more from self-employment during the year. You may also have to file a tax return for other reasons.

Q: How do I figure out earnings from my Avon business?
A: Your earnings are the amount you sell to your Customers, minus the amount you paid Avon for the merchandise, minus all your business deductions. You must also include the value of prizes and awards you receive from Avon. Also, Demo Certificates are included in 1099 reportable income, in the year they are redeemed.

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