Hi @riversidebaitli. So, legally, this is not possible. Square is required to report all card processing funds to the IRS, period.
However, your pass-through license fees are no different that sales taxes you might need required to collect. Those aren’t ultimately considered income, either. All you need to do is book them properly in your accounting system so that they are deducted from your gross sales. That makes this an accounting issue, and you should consult with your accountant about how to properly book this. We can not advise you about this here.
Chip A.
Square Expert & Innovator and member of the Square Champions group. (But NOT a Square employee, just a seller like you)
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