As a sales representative for a direct sales company, you have an obligation to report income earned through that business for tax purposes. At tax time, the direct sales company will send Form 1099-MISC Miscellaneous Income with Box 7 checked (if value is above $5,000) and would report any prizes/incentives as Box 3 income. A copy of that 1099-MISC also goes to the IRS.
To report business income on your tax return, the IRS requires you to file a Schedule C (Form 1040) Profit or Loss From Business. That schedule must list all of your income for your direct sales business (along with the information from Form 1099-MISC). See the IRS Tax Tips for Direct Sellers webpage for more details.
Even if you never receive Form 1099-MISC, you are required to report all income accurately to the IRS.
Note that any link in the information above is updated each year automatically and will take you to the most recent version of the webpage or document at the time it is accessed.