how is irs notified when multi level marketers purchase $ 5000 or more in products for resale ? A. the cost of goods sold will be backed out of the total reported by the parent company on form 1099K B. the parent company will indicate this on a form 1099 misc issued at end of year C. the parent company will treat the direct seller as an employee and issue a form w2 at end of year D. the parent company will issue an end of the year summary of sales and expenses to the individual marketer an the irs which includes the total amount purchased for resale