IRS announces delay in new $600 1099-K tax reporting threshold

[sheila@ebay]

Please check out the 1099k reporting threshold announcement from December 29th, here. This announcement should cover the majority of 1099 questions.

Have more questions that aren't covered in the announcement? Please post your questions in this thread.

[mary1215-1]

You could just determine what you owe the IRS send them a check and at least feel good about yourself.

[shipscript]

@mrace72 

Download your eBay report for your records and just aggregate on your tax return. There is no need to keep tedious records, as eBay has done most of that. You will, however, need to figure out the cost of acquisition if you want to deduct that as an expense, so that you won't owe any taxes from cleaning out your closets.

[wastingtime101]

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@babclassics wrote:

I just got 2 of my 1099-Ks today from eBay.   They are NOT using my TIN on the forms.  They are using my SSN on both forms.  I checked and last year (2021 filing) both forms correctly used my TIN, and it is still correct in my business settings.

Me thinks you are going to have a huge flood of pushback on this one.  Suggest posting an eBay response on getting corrected 1099-Ks   Thanks.

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There's a site-wide tech ticket on this. If you haven't contacted CS yet @babclassics you can provide the below ticket number to expedite your call/chat:

1099K issued under SSN rather than the EIN and business name (February 1, 2023)

Reference ID: ALERT14445

Provide Member ID:

[babclassics]

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@wastingtime101 wrote:

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@babclassics wrote:

I just got 2 of my 1099-Ks today from eBay.   They are NOT using my TIN on the forms.  They are using my SSN on both forms.  I checked and last year (2021 filing) both forms correctly used my TIN, and it is still correct in my business settings.

Me thinks you are going to have a huge flood of pushback on this one.  Suggest posting an eBay response on getting corrected 1099-Ks   Thanks.

---

There's a site-wide tech ticket on this. If you haven't contacted CS yet @babclassics you can provide the below ticket number to expedite your call/chat:

1099K issued under SSN rather than the EIN and business name (February 1, 2023)

Reference ID: ALERT14445

Provide Member ID:

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Update - I talking with eBay rep on Facebook for business.  The ticket in question has been closed and "resolved" so you can't add to it any longer.  Here is the eBay resolution from the ticket: 

"Member's 1099-K form generated contains the SSN rather than the EIN and business name". The resolution was this "Customers may call in requesting their 1099K to reflect their EIN if they are a Sole Prop or Single Member LLC. The 1099K with an SSN is not a bug or error, these have been filled out per the IRS."

So, it sounds like eBay will let you use your business name and EIN for Sole Proprietor or Single Member LLC if you ask them to, but they do NOT think it is a mistake.  I have poured over IRS documents and it does seem for this exact case EIN is optional and SSN can be used instead.  But many single owners use EIN for better privacy and separation when dealing with banks or contracts.

BUT... for multi-member LLCs and S-CORPs it seems to me eBay should be using the EIN for sure and we should not have to ask!  Sounds like for some sellers like @vinascrystals this is the case. For those types of businesses, I would consider getting a call-back from the eBay finance people here according to facebook for business chat: http://spkl.io/61824w042 

I am NOT a tax expert but here goes: For Sole Proprietor it seems you can use either SSN or EIN as you feel comfortable.  I prefer to get new 1099-Ks that match my previous filings.  Hope this helps.

[stephenmorgan]

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@babclassics wrote:

I am NOT a tax expert but here goes: For Sole Proprietor it seems you can use either SSN or EIN as you feel comfortable.  I prefer to get new 1099-Ks that match my previous filings.  Hope this helps.

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Do you think with the 1099K's not matching previous filings that this would cause a paper audit?

[babclassics]

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@stephenmorgan wrote:

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@babclassics wrote:

I am NOT a tax expert but here goes: For Sole Proprietor it seems you can use either SSN or EIN as you feel comfortable.  I prefer to get new 1099-Ks that match my previous filings.  Hope this helps.

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Do you think with the 1099K's not matching previous filings that this would cause a paper audit?

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Sorry, but I really have no way of knowing that.  If you are concerned, consider calling the IRS tax line and explaining the situation that eBay changed the way they generate 1099-K for the 2022 tax year.  They probably have gotten questions about this already.

It probably depends on exactly what business structure you use.  Sole Proprietor is the least complex so is less likely to cause an audit.  But you never know.  You could get audited for any number of reasons and it is often random who they pick.  Lotto in reverse 🙂