Our company used the Groupon web site to run a promotion. Groupon advertised our company, billed the customers, and sent us a commission check equal to 48% of the billed credit cards.
I got a 1099-K form from Groupon. The thing is the 1099-K shows the grand total that Groupon collected. But they only paid us 48% of that. If I send the 1099-K in with our tax return is the IRS going to think we earned the full grand total? How do I show that we only got 48% of that?
Show the 52% that Groupon got as a marketing expense, or an advertisement expense, or as a promotion expense. That's clearly what it is, after all.
Our company used the Groupon web site to run a promotion. Groupon advertised our company, billed the customers, and sent us a commission check equal to 48% of the billed credit cards.
I got a 1099-K form from Groupon. The thing is the 1099-K shows the grand total that Groupon collected. But they only paid us 48% of that. If I send the 1099-K in with our tax return is the IRS going to think we earned the full grand total? How do I show that we only got 48% of that?
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