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Go Back   Law Forums at Onlypunjab.com > SCAMS > MLM/Pyramid Scams

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Old 12-18-2006, 05:28 AM
Hector Hector is offline
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Join Date: May 2006
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Default tax requirements in MLM??

Hello there,
I am looking at MLM websites and observed that this "business" is the total silence on TAX and business registration requirements. Is this information only talked about after the sales pitch and you have signed up? What if a person lose money in an mlm, can they claim it as a tax deduction?
thank you in advance for any reply.
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Old 12-18-2006, 05:31 AM
advisor advisor is offline
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Join Date: Apr 2006
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Hello, With most MLMs, members are listed with the IRS as direct seller or an independant contractor. Different rules apply for each of these, so person need to find out which one are reading the MLM company's Policies and Procedures. If you're not listed as an employee of the company, you can claim certain things on your taxes like gas, postage, utilities, and in some cases home office expenses etc. And if you lose money, you can get some of that back through your taxes.
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