Hostgator & Clickbank Didn't Report My Tax Income?

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What would you do if you didn't receive a 1099 from the internet affiliate programs that you earned money from AND they didn't report your earnings to the IRS?

I earned over $1,000 for Hostgator and over $1,000 for Clickbank; however, neither sent me a 1099.

Hostgator gave me the runaround when I tried getting the information.

Clickbank told me some crap about my social security number not matching my name, so they couldn't file it? If this were true, why didn't they contact me and tell me they would have to discontinue my account until I gave them the correct information? I had to contact them. Seems fishy...

All of my information is correct. I contacted the IRS about this and they verified that my information is correct and stated they didn't understand why Clickbank lied to me. However, they said neither company reported how much they paid me. The only thing they are showing is my unemployment info.

Have you ever experienced such? Would you still report this?
#clickbank #hostgator #income #report #tax
  • Profile picture of the author miklanderson2
    Yes, you should still report it. In the end, it'll be you who ends up getting in trouble if you don't file the correct information. It'll be more of a hassle to gather the right information, but you need to make every effort to make sure you're reporting all of your income for the year. You'll be the one who has to pay the fines if you don't report everything and the IRS finds out about it.
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  • Profile picture of the author marketingva
    Hi Adam,

    A bunch of my clients didn't send me 1099's this year either. I will still report every penny I made because ultimately if I get audited by the IRS it is me that will get penalized for not reporting income.

    Bonnie
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  • Profile picture of the author Karry
    Just because you didn't receive a 1099 doesn't mean you don't have to report your income. You don't know if those companies are just late in filing their paperwork with the IRS. The companies could even file an amended return at a later date (even a year or so later) and end up reporting your income at that time. You just never know.

    According to IRS Publication 334 Tax Guide for Small Business, "You must report on your tax return all income you receive from your business unless it is excluded by law."
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  • Profile picture of the author ronrule
    Originally Posted by AdamClick View Post

    What would you do if you didn't receive a 1099 from the internet affiliate programs that you earned money from AND they didn't report your earnings to the IRS?

    I earned over $1,000 for Hostgator and over $1,000 for Clickbank; however, neither sent me a 1099.

    Hostgator gave me the runaround when I tried getting the information.

    Clickbank told me some crap about my social security number not matching my name, so they couldn't file it? If this were true, why didn't they contact me and tell me they would have to discontinue my account until I gave them the correct information? I had to contact them. Seems fishy...

    All of my information is correct. I contacted the IRS about this and they verified that my information is correct and stated they didn't understand why Clickbank lied to me. However, they said neither company reported how much they paid me. The only thing they are showing is my unemployment info.

    Have you ever experienced such? Would you still report this?
    Report it and pay the taxes on it. If you're clever you can report it as a capital gain instead of income so it's taxed at a lower rate, but that's a different conversation.

    If you don't, it will come back on you later. Several years ago a client didn't report paying me, so I didn't report the income. Two years later I got a letter form the IRS demanding payment - wasn't a high enough number to be flagged for an audit or anything, I just responded with a check and it was done with. The reason the client hadn't reported it was because they had filed an extension with the IRS, which gives you until October to file. Took the IRS a while to catch up, but it eventually hit their radar.
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  • Profile picture of the author Green Moon
    That income is taxable, whether or not it was reported by Hostgator and Clickbank. You should file your return correctly. I don't know why they didn't send you a 1099 if you gave them your individual social security number. Many of my clients fail to send me a 1099 even though they have paid me more than the required $600, but most of them are small businesses that simply aren't aware that they have to send 1099s to vendors as well as to the more understood "independent contractors" they hire. But companies like Hostgator and Clickbank surely know better.
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