Media.net does not issue 1099s. Huh.

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Media.net does not issue 1099s. Huh.

Media.net does not issue 1099s to publishers

SpruceBringsteen

8:27 pm on Feb 7, 2014 (gmt 0)

This is my first post-- I hope this is in the right spot.

I have been using Media.net as a publisher for much of 2013, and it's been great. However, I just enquired with my Media.net agent and found out they don't issue 1099-Misc forms.

I thought this is strange, because Google and all the affiliate programs in the US issue these after you earn $600.

Of course, the company will report to the IRS and publishers must so too. That's not an issue, I know how much I made and will report it.

However, it seems really odd to me. Anyone in the same boat? Do you know why they do this?

Someone suggested to me it is because they pay by Paypal or wire transfer only.

However, PayPal issues 1099s once you have 200 buy/sell transactions AND meet a $20K threshold, so Media.net users paid monthly would never meet the 200 transaction threshold no matter how high their income. Meanwhile, the bank isn't issuing one based on the wire transfers.

LifeinAsia

2:31 am on Feb 8, 2014 (gmt 0)

Welcome to Webmaster World!

If they paid you over $600 for the year and you are not a corp, they had to send you a 1099 by Jan. 31. Otherwise, they will be in a world of hurt once the IRS catches up to them.

Of course, the company will report to the IRS and publishers must so too.

the problem is if they make a mistake and reported a different amount than you think you earned and the IRS audits you years later, YOU are the one who has to jump through hoops to try to get them to correct their mistake. Good luck with that. That's one of the reasons the IRS requires them to send a 1099 by Jan. 30- so you can (theoretically) fix any discrepancies in a timely manner.

SpruceBringsteen

5:05 am on Feb 8, 2014 (gmt 0)

Yes, Life in Asia. Thanks for your response.

That's why I am concerned. I am extremely surprised. I am also surprised I couldn't find anyone else in the same position talking about this!

anefarious1

4:53 pm on Feb 25, 2014 (gmt 0)

I was also surprised nobody else commented on this issue. I couldn't find anything at all about the non-compliance of Media.net in regards to providing a 1099 to publishers. Do you really think they provide the data to the IRS and not us? I doubt that.

I plan to report it on my tax return but I don't even have a history of my 2013 payouts. At the very least they should have a payment history section on the site!

LifeinAsia

5:02 pm on Feb 25, 2014 (gmt 0)

I just enquired with my Media.net agent and found out they don't issue 1099-Misc forms.

It might be time to ask your contact why they feel they don't need to comply with Federal law.

Maybe they think you're a corp instead of an individual?

SpruceBringsteen

5:43 pm on Feb 25, 2014 (gmt 0)

Anefarious,
Thanks! I am surprised we're the only two here who use media.net. It's been great for my revenue. But I do not like this aspect which I did not have to deal with before since I started working with them in 2013.

A tax accountant (blogger, not my own accountant) said they would have to report since --although primarily based abroad, they also have a location in Austin.

That said, I don't believe they ever asked for my social-- they didn't request a w-9.

As for a history, can't you just look at paypal or your bank records if you got a wire payment?

LifeinAsia,
Thanks for your response.
The agent was quite clear that Media.net does not issue 1099s to anyone. And I am sure they know many of their clients are individuals.

anefarious1

6:34 pm on Feb 25, 2014 (gmt 0)

Hi SpruceBringsteen,

I get my payments wired direct into an account and the entries don't even say Media.net or anything that would let me know what it is! Also, my bank doesn't really provide older transaction history as well as Paypal does. I guess I could dig into each monthly statement or request the info. Either way it is going to be a pain in the butt.

Do you know if Media.net will give me the payout amounts if I request them? My contact person hasn't been good about answering my questions lately.

I like the simple design and functionality of Media.net but this is ridiculous. We need 1099s!

SpruceBringsteen

7:49 pm on Feb 25, 2014 (gmt 0)

I hear you, Anefarious!

I understand about the bank. That is a pain. Maybe they could send a payment history. It really SHOULD be provided by default.

Have you noticed that when your numbers are on the up, the agents are all over you on email, and then if your numbers lag a little, they disappear?

My traffic fluctuates seasonally, and it's like night and day.

anefarious1

3:21 pm on Feb 28, 2014 (gmt 0)

I reached out to my account manager regarding this issue and I quote the response, "...we do not provide a record to the United States IRS as our bank is based out of United Arab Emirates, where there is no provision of the 1099 Misc Form. Hence we are unable to provide these forms to our publishers."

They did provide an Excel spreadsheet of monthly payouts upon request.

LifeinAsia

4:33 pm on Feb 28, 2014 (gmt 0)

our bank is based out of United Arab Emirates, where there is no provision of the 1099 Misc Form. Hence we are unable to provide these forms to our publishers.

The bank doesn't send the 1099- the company does.

Seems like a gray area- they may be a non-U.S. company, but they are operating in the U.S. (and expanding their U.S. operations). I wouldn't want to be them if the IRS decides to rule against them and hits them up for penalties going back several years.