mam98031 • Volunteer Community Member • Buyer/Seller since 1999
@wayuuki wrote:I filled out 2022 taxes so early without knowing ebay will generate a 1099 on 2022. My accountant said to me to wait until this year for IRS amendment and recently received this letter ( off course they are charging $ 304 Interest ) , but how come they came up with 5.5k proposed amount on a 2.2k net earnings ?
Im not an expert with this tax issues...
The first thing I'd do is fire your accountant and find one that knows about filing taxes on internet sales. While you may not be an expert, your accountant is suppose to be and that was simply horrible advice.
The accountant also should have known that claiming income is NOT dependent upon you receiving any kind of form from any site you may sell on. All income is to be reported to the IRS.
And don't forget about filing an amended return for the other years in which you were selling on Ebay but didn't claim the sales. Now that you are on the IRS radar, you need to come clean about everything in the hopes that you don't get thrown into the audit cycle.
Why did you need to file your taxes before the end of January?
@ten_o_nine wrote:eBay sends you and the IRS a 1099, when you file your taxes, the IRS compares what they received as income to what you reported, if they don't match, it may trigger an audit.
Did you report this amount on schedule C or some other way? Did you report and deduct your expenses when you filed 2022 income taxes?
If you filed as above, I would appeal, if you didn't file, filed without reporting expenses, or you didn't report the amount, you can do it now and probably just pay interest and penalty on the 2k you made.
The OP has already said they did not claim their Ebay sales. Sounds like they never have claimed their internet sales. They got very bad advice from their accountant.
@chariot_badges wrote:
@mam98031 wrote:
@theteamsetguy wrote:
Voters voted the way they did because many are sick of people not paying their fair share of taxes.
Voters didn't vote for these rules. The 1099K has always been between IRS and the Congress.
That's true ... but, who voted for Congress?
Can't avoid it. Deflection won't work.
We voted for this.
All the tax codes .. we voted for.
I was deflecting nothing. I have no reason to do that. There is no need for an attitude, we can have a civil discussion. Your outlook may not be the same as mine, but that is fine too. I take no issue with it.
You are correct, we all vote for our representatives in Congress, however it is NOT true that they Vote the way those of us that voted for them would have voted for something. It happens all the time when they vote for things that their constituents are upset by and would not have voted for.
With that said, I take no issue with the 1099K. I have always claimed all my income in all 25 years that I've sold on the internet, whether this site or others. So to me it simply has no impact on me personally. Nor does it others that have done the same.
I do understand and respect that for some it is a new thing to report all their income to the IRS. And that isn't always because they are trying to skirt the issue of paying taxes. Sometimes it was honest mistakes and simply not knowing they needed to. It is not always because they are trying to hide anything.
For those sellers that are only selling a few hundred dollars worth of stuff or even a a bit more. It is highly likely that once they claim that income on their tax return and subtract all their cost, that the net taxable income isn't enough to cause a big impact in taxes they owe.
