### Question
What does direct seller mean?


### Answer
**Direct seller** has the following meaning in *26 U.S.C. § 3508*:

> any person if—



(A) such person—



(i) is engaged in the trade or business of selling (or soliciting the sale of) consumer products to any buyer on a buy-sell basis, a deposit-commission basis, or any similar basis which the Secretary prescribes by regulations, for resale (by the buyer or any other person) in the home or otherwise than in a permanent retail establishment,



(ii) is engaged in the trade or business of selling (or soliciting the sale of) consumer products in the home or otherwise than in a permanent retail establishment, or



(iii) is engaged in the trade or business of the delivering or distribution of newspapers or shopping news (including any services directly related to such trade or business),


  


(B) substantially all the remuneration (whether or not paid in cash) for the performance of the services described in subparagraph (A) is directly related to sales or other output (including the performance of services) rather than to the number of hours worked, and



(C) the services performed by the person are performed pursuant to a written contract between such person and the person for whom the services are performed and such contract provides that the person will not be treated as an employee with respect to such services for Federal tax purposes

#### Citation:
  - *26 U.S.C. § 3508*
  - Heading: **Subtitle C-Employment Taxes > CHAPTER 25-GENERAL PROVISIONS RELATING TO EMPLOYMENT TAXES**

