We’ll do our best to walk you through the below information regarding your tax situation with Feastly. Keep in mind however, the following is not specific tax advice. You should always report in accordance with applicable state and federal tax laws. We will send any required tax information forms to you, but if you have additional questions on how to file - particular to your tax situation, we highly recommend consulting a tax professional in good standing with the IRS.
HOW AM I CLASSIFIED?
All cooks and hosts are considered registrants/users of the Feastly platform, and in some circumstances, independent contractors. This is because it's possible for you to receive two different types of income, and each type is reported on a separate form with very different tax implications. It should be noted that whatever the type of income you're reporting, you are not considered an employee of Feastly.
WHAT TAX DOCUMENTS/FORMS WILL I RECEIVE?
It may vary, but here's a quick summary of the possibilities:
Cooks and hosts who earn at least $20,000 in meal earnings from Feasters in the last year, and have done so from at least 200 transactions, will receive a Form 1099-K*.
Cooks and hosts who earn at least $600 in earnings from bonuses or Feastly sponsored payouts including but not limited to: referral credits, Feastly catered events, and receipt reimbursements, in the last year will receive a Form 1099-MISC.
Those cooks and hosts who do not meet either of the above specifications in the last year will not receive a tax form.
THE AMOUNTS ON MY 1099s ARE CALCULATED HOW?
- 1099-K: If you receive a 1099-K from Feastly, the dollar amount you see in Box 1 consists of all meal earnings collected in the previous year (after we deduct our fee %).
- 1099-MISC: If you receive a 1099-MISC, the dollar amount in Box 7 is all income not related to meal earnings, for example referral credit/bonuses, private Feastly events, reimbursements, etc.
Remember: It's possible you won't receive either of these forms.
CAN I WRITE OFF MY MEAL INGREDIENTS AND HOSTING SPACE?
We highly recommend that you speak to a tax professional or advisor to make sure you are reporting all Feastly activity related to your participation with the platform in the smartest way possible.
WHEN WILL I BE RECEIVING MY 1099?
We send out 1099s by the end of January/ early part of February.
WHAT IF I DIDN'T RECEIVE ANY 1099 FORMS?
In some cases, you may not receive a form from us at all; depending on quantity earned, payout methods used, and the tax information that was submitted. If you didn't receive one but were expecting one, please send us an email to firstname.lastname@example.org and we'll get back to you regarding your account.
DO YOU RECOMMEND ANY TAX-RELATED RESOURCES?
A certified tax professional in good standing with the IRS is the greatest resource. You'll also find valuable information on the IRS's official website, including this withholding calculator.
Payable: We have partnered with Payable to simplify the process of managing and sending you the proper tax documents. If you receive a notification from payable, most likely you will be receiving tax documents. To check out their site and the informational resources they have you can visit: http://www.payable.com
HOW DO I FILL OUT A W-9?
Your W9 form is filled out when you set up a payment account on Feastly. While we don't have direct access to your information, our payment processor uses that information with Payable to generate your tax form.
Otherwise, you will need to fill out a W-9 in order to remain an active cook or host. Download the 2014 pdf from the IRS's website and send completed form to email@example.com.
DO I NEED FEASTLY'S EIN FOR SAID TAX RETURN?
Since you are not an employee of Feastly, you are not required to provide the company’s EIN (also known as Employer Identification Number) on your tax return. If you receive either a Form 1099-K or Form 1099-MISC issued by Feastly, the company’s EIN will be reported on the form you receive.
*Internal Revenue Code (IRC) Section 6050W requires Feastly to report gross transactions processed on behalf of cooks and hosts that exceed certain thresholds on IRS Form 1099-K. To ensure accurate 1099-K reporting, the IRS requires US Federal Income Tax Withholding (currently 28%) of the gross transaction amount if LivingSocial does not have merchant’s correct Taxpayer Identification Number (TIN) and legal name. Feastly must have your validated TIN and legal name on file, whether or not a 1099-K is required to be filed.
Actions for Cooks and Hosts
What will Feastly need from me?
In order to help comply with the reporting requirements, Feastly needs your TIN, such as a Social Security Number (SSN) or Employer Identification Number (EIN). You can provide this information by completing Form W-9, as referenced above.
Your TIN is one of these:
- Your Social Security Number (SSN)
- Your Employer Identification Number (EIN)
- Your Individual Tax Identification Number (ITIN)
Please use the guidelines below to determine which TIN to provide. You should use the TIN that you use when reporting any taxable income related to your Feastly activity to the IRS.
Business Entities with an EIN: Provide your company EIN and company name.
Sole Proprietors with an EIN: Provide your company EIN and your own name. Do not provide a business name or a DBA name (“Doing Business As”) with your EIN.
Individual Merchants and Sole Proprietors without an EIN: Provide your SSN or ITIN and your name. Do not provide a business name or DBA name with your SSN.
More information can be obtained on TINs from the IRS website (http://www.irs.gov/Individuals/International-Taxpayers/Taxpayer-Identification-Numbers-%28TIN%29).
What will happen if I do not provide my TIN to Feastly?
Feastly reserves the right to suspend payment in order to remain in compliance with Section 6050W. . If a valid TIN and legal name is not provided, Feastly will be required to remit to the IRS backup withholding (currently 28%) on the gross transactions that LivingSocial processed on your behalf, before deal bucks, credits, discounts, fees, refunds, or any other adjustments. Please help us by immediately providing the correct TIN and legal name information. We value our partnership and will work with you to fix this issue as soon as possible.
What will happen if my name and Taxpayer Identification Number (TIN) on file with Feastly do not match my legal name and TIN on file with the IRS?
Feastly is required to confirm name/TIN matches with the IRS. If there is a mismatch, the IRS will issue a “B Notice.” Upon receipt of a B Notice, LivingSocial will attempt to correct the legal name and TIN on file by contacting you, and reserves the right to suspend payment, if you do not respond in a timely manner with the necessary information, Feastly will be forced to remit 28% of your gross sales directly to the IRS.