Tax Center
Resources to help you file your taxes as an independent direct selling consultant.
Direct Seller Tax Filing Obligations
If you are an independent direct selling consultant and have been paid at least $600 during the year, the company has to file a Form 1099-MISC with the Internal Revenue Service to report payments for services performed in your business. The company will also send you a copy of this 1099-MISC to report how much the company paid you that year.
Due to the COVID-19 outbreak, the tax filing and payment deadline has been extended until July 15. Click here for more information.
Schedule C
While filing your regular individual tax return (typically a Form 1040) you will have to complete a Schedule C “Profit or Loss from Business” where you will enter all income and expenses from your direct selling business.
Claiming Deductions
A home office deduction is available for direct sellers using their homes for business.
Self-employed individuals can also claim a health insurance deduction for medical, dental or long-term care insurance premiums that self-employed people pay for themselves.
Earned Income Tax Credit
The Earned Income Tax Credit (EITC) is a credit for people who earn low-to-moderate incomes. Earned income includes all taxable wages you get from working for someone who pays you or from working in a business on your own.
Direct Selling Audit Technique Guide
DSA worked closely with the Internal Revenue Service (IRS) to prepare an Audit Technique Guide (ATG). The ATG will be used by IRS examiners and auditors when reviewing direct selling returns. The ATG can be found here.
Additional Resources
Direct sellers can view brochures from the IRS for additional information.
Gig Economy Tax Center: Information on reporting income earned from the gig economy.
Publication 4591: Small Business Tax Responsibilities
Publication 3995: Avoiding Illegal Tax Avoidance Schemes
IR-2018-197: IRS to highlight tax reform changes affecting small businesses; Small business owners, self-employed should plan now for new changes
FS-2018-17: The Highlights of Tax Reform for Businesses
For any other questions, visit the IRS Small Business and Self Employed Tax Center.
Health Insurance – PRO Insurance Managers
Health, liability & term life insurance for the field salesforce.
DSA Social Media Guidelines Handbook Released to Channel Companies and Distributors
To help ensure social media etiquette standards, adhere to consumer protections, and comply regulatory guiderails, DSA has released the DSA Social Media Guidelines Handbook.
Unveiled during DSA Social Media Day held on January 13, 2023, the handbook has been developed as a valuable DSA-member resource available to all DSA-companies and their distributors.
Code of Ethics
The DSA Code of Ethics is the foundation of our commitment to responsible business practices and high standards across the direct selling community. It provides member companies with clear principles for protecting consumers, supporting independent salespeople, and conducting business with transparency and integrity.
Filing A Code Complaint
As part of DSA’s mission to promote the highest levels of business ethics among DSA member companies, our self-regulatory processes ensures that DSA member companies and their independent salespeople comply with the Code of Ethics through the Office of the Code Administrator. The Code Administrator is an independent third party with expert knowledge of the Code of Ethics and the direct selling channel and whose Office provides a mechanism for any complaints or inquiries regarding potential violations of the Code’s provisions. The Code Administrator works with DSA member companies to resolve non-compliance with the Code of Ethics and is empowered to investigate concerns, render decisions and enforce remedies.