1099K issued to SSN not company's EIN

[newmiker]

Just found that eBay sent 1099K to the sole shareholder's SSN.  But the company is elected as S crop tax purpose under EIN.  I contacted eBay and it said they will update my EIN and send a new 1099 form. But the possible problem is that I believe that the original 1099K under SSN has been possibly transmitted to IRS.  I asked if they can generate a "corrected" version of 1099K with all zeros under SSN and send it to IRS. They said they can only issue a new 1099K under company's EIN.  I am not sure if the new 1099K info will be transferred to IRS.   

Anybody has the same problem? and how to do tax return for both personal (1140)and company's return (1120s)?

[monroe67]

"But the possible problem is that I believe that the original 1099K under SSN has been possibly transmitted to IRS."

Not yet.  eBay and other organizations that have to file 1099Ks have the following deadlines:
to recipients (meaning eBay's sellers who meet the requirements) -- January 31;
to the IRS if eBay has chosen to submit the reports on paper -- February 28;
to the IRS if eBay has chosen to submit the reports electronically -- March 31.

I think it is reasonable to assume that eBay will report this info to the IRS electronically, as opposed to in boxes of paper reports.  That deadline of March 31 gives eBay two months to correct any info that sellers report to them might be wrong.  

Here's an excerpt from the IRS publication concerning the due date (to the IRS) for all 1099 reports, with some line breaks, bolding, and color added by me.  I'm including the few lines about exceptions to this due date, to show that the 1099K is not an exception:

C. When To File

Except as indicated below, file Forms 1097, 1098, 1099, 3921, 3922, or W-2G
on paper by February 28, 2023,
or March 31, 2023, if filing electronically.
File Forms 5498, 5498-ESA, 5498-QA, and 5498-SA by May 31, 2023. Form 1096 must accompany all paper submissions. See part E  for paper and part F  for electronic filing requirements.

The following are exceptions to the filing deadlines shown above..

• File and furnish a copy of Form 1099-NEC on paper or electronically by January 31, 2023.

• Form 1099-SB is generally due by February 28, 2023, or March 31, 2023, if filing electronically, but see Regulations section 1.6050Y-3(c) for a special exception.

[newmiker]

Thanks so much. then no worry.   then there should be also no concerns about the personal tax.  Once eBay corrects 1099k, it can be used for s corp tax return.

[offers-forless]

same problem, nit only that, a huge mismatch of the gross payment almost jacked up by 10%

[vinascrystals]

I am having the same issue. Just found out yesterday that the 1099-K was issued under my SSN instead of my LLC, S CORP'S EIN. I called eBay right away. The support agent told me it could take 3 days for the responsible department to get back to me and then another 7 days for the new 1099-K to be updated. 

Does this sound right to you? 

[beautifuljewelrynyc]

Hi, Did eBay get back to you? I have the same problem, and have so terrible experience to speak with eBay tax department agents. I called eBay 5 days ago. The agent said would submit request to correct it, but haven't. I called eBay a few times today. 3 agents refused to correct the 1099K. They said my business type is "Sole Proprietor/Single-member LLC", and IRS requires them to issue 1099K to SSN. And they mentioned only "Sole Proprietor" and intentionally skipped to mention "Single-member LLC" which is joined together with "Sole Proprietor" under eBay's business type option.

I don't know what to do now. Some other community member suggests to call IRS to get eBay to fix the issue.

[beautifuljewelrynyc]

And when I click edit business type, the page shows up that the "Single-member LLC" disappeared from my account, my account becomes only "Sole Proprietor". eBay revised the setting! and without any alert to LLC sellers. Is it the truly reason eBay changed the setting and caused incorrect 1099K generated? And now they refuse to correct the 1099K, and want LLC sellers to be responsible for the mistake they made?

[roshaanwatches]

I have the same issue, I call eBay for correction, and first, the representative said, they will send me correction version within 14 days. After a week I call eBay again for an update, this time they told me, your 1099-K is correct under the new IRS guidelines, and "Solo proprietor" LLC will get the 1099-K under their SSN.

Now I am confused, who is correct? both representatives gave me different information. 

[esignaturec]

Same problem.Is there anyone get fixed on this problem?