Most of our customers buy small dollar amounts of our product (typically less than $500 at a time). However, we have one customer which typically buys $15,000.00 or more of our product at a time. During the course of a year, they may purchase $100K or more of our product (which they resell in retail stores). My question is, is this customer (the one who buys $100K+ from us) supposed to report these purchases to the IRS? Thanks for any help.
Why do you care? You have to report the $100K of income whether or not your customer reports the purchase to the IRS.
-- Rich Carreiro snipped-for-privacy@animato.arlington.ma.us
Generally, no (the IRS would melt if every big transaction were reported to it); however, if they get audited the IRS will certainly see how much they paid you. Why does it matter?
Seth
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