Should I use cash or Zelle, IRS, taxes

[trandraskell]

I'm buying from resellers locally to fill my eBay store to make a small profit. I intend to find more people to buy from and I want to train them on what I'm looking for. These new people are used to having regular jobs where taxes are taken out for them. I plan on paying them using Zelle just because digital is more convenient than handling cash. Quick google search says Zelle does not report to the IRS. I need to know what advice to give these prospective product finders about their taxes. Sounds to me like if they don't receive a 1099 from Zelle, they would pay 0 in taxes if they wanted to. I know the right thing to do for them is to keep track of each transaction in Excel and report it on their taxes but it's not my decision.

 

[tmp]

@trandraskell Use something else that reports to the IRS if that’s a concern. Ultimately it’s up to them depending on the dollar amount if they want to self report.

 

[trandraskell]

@tmp my concern is for their well being. i dont want them to get blindsided by an unexpected tax bill. i need to know how specifically to advise them so they dont get in trouble

 

[steph5472]

@trandraskell Say "I don't want you to get blindsided by an unexpected tax bill. Make sure you consult a licensed tax professional so you don't get in trouble."

 

[jwerider]

@trandraskell You should not take on that part of the responsibility other than recommending QuickBooks, stuff like that.

How you transmit the funds to them is irrelevant, whether these transactions get reported or not is irrelevant.

As their 1099 employer you need to track the labor costs and report that to IRS and the contractors.

If they are making markup on the product sold to you, then their own business entity must track that themselves.

 

[logansc]

@trandraskell You are the one required to report.