Q: Litigation with amazon
I had a reseller account with Amazon, they terminated my account and took away my profit about 15k. Following year I received a email notice to download my 1099, I contacted them numerous times but they didn't send me the 1099, now I received a letter from IRS that I didn't file 1099 with Amazon. Can I sue them for the IRS penalty and other loses I incurred?
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- California
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A:
Under California law, you may have legal grounds to pursue a case against Amazon for the issues you've described. However, the success of your case would depend on several factors, such as the specific terms of your reseller agreement with Amazon, the reason for the termination of your account, and the correspondence between you and Amazon regarding the 1099 form.
Here are a few points to consider:
1. Termination of your account: If Amazon violated the terms of your reseller agreement or terminated your account without a valid reason, you might have a case for breach of contract.
2. Withholding of profits: If Amazon wrongfully withheld your profits, you could seek to recover those funds.
3. Failure to provide 1099: If Amazon was required to provide you with a 1099 form and failed to do so after multiple requests, leading to penalties from the IRS, you might be able to seek compensation for those penalties and related losses.
4. Statute of limitations: Be mindful of the statute of limitations for filing a lawsuit in California, which is typically four years for breach of written contract and two years for oral contracts.
To determine the best course of action, it is highly recommended that you consult with an attorney specializing in business law or contract disputes. They can review your reseller agreement, assess the specifics of your case, and advise you on the most appropriate legal steps to take.
Keep in mind that litigation can be time-consuming and expensive. Alternative dispute resolution methods, such as mediation or arbitration, might be worth exploring if your reseller agreement with Amazon includes provisions for these methods.
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