Multiple Seller ID's, some in MP some still with PP, no 1099 avail from Ebay because under 20K

[kipfl1554]

So, over the years got my 1099 from PP, reconciled everything and was able to do my business taxes. Assumed with MP would get a 1099 for part of the year and combine the info  with PP to come up with some income  figures. No, because of a partial year on MP it did not add up to 20K, and I will not be getting a 1099 declaration.  So I guess I don't have to pay income taxes on monies earned during this period? Will Ebay pay my legal fees when the IRS audits me. I think I know the answer to that already.  They should send 1099's out to anyone who needs it despite this 20K  cut.  I believe it will be a nightmare trying to break out sales, shipping, fees  without a 1099  as guidance  for a partial year.  

[ronsam-197]

Income tax is due on income regardless of whether you get a 1099 or not.

[rebell45]

Some states require that payers like eBay provide 1099-K for any payee living in their state, regardless of the amount. I know that Massachusetts and Virginia require them and eBay is mailing them out to sellers in those states. I don't know if Connecticut requires them or not. If they do, you'll get one, if not, you'll be responsible for reconciling your tax info yourself from whatever records you can obtain from eBay and PayPal.

Ain't eBay great.

[kensgiftshop]

I've been here  since 2011 and never receive a 1099 and have had no problems figuring out my taxes.

Keep track of everything through the year, then at tax time, you have all the information you need.

[comics-scifi-collectibles · Accepted solution]

@kipfl1554. Maybe this will help you >>>

For the portion of the year that you were receiving payouts via managed payments go payments> reports> transaction report

https://www.ebay.com/sh/fin/report

For the portion of the year that you were receiving payouts via paypal here is how to run the paypal report

https://community.ebay.com/t5/Selling/PayPal-s-date-range-programmable-CSV-formatted-database/m-p/30...

Reconciliation for managed payments>

https://www.ebay.com/help/selling/fees-credits-invoices/reconciling-ebay-sales-transactions-managed-...

[tim-gloria]

Did you see that transaction report? It's huge!! It is in Excel form with rows and columns of figures. It lists every form of income and payment and the way each transaction is divided up. I called Ebay about getting a 1099 for the period after Paypal.  Even though I exceeded the IRS threshold requiring a 1099 with Paypal for 2020, because I didn't exceed that same threshold with mismanaged payments, Ebay refused to send me a 1099 for the remainder of 2020.  Ebay's advice!! Take my Paypal 1099 and the Ebay transaction report to a tax expert and pay him to figure it out. When I asked who is going to pay for that tax man's service, Ebay had no answer. TAKE ME BACK TO PAPAL!! 

[comics-scifi-collectibles]

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@tim-gloria wrote:

Did you see that transaction report? It's huge!! It is in Excel form with rows and columns of figures. It lists every form of income and payment and the way each transaction is divided up. I called Ebay about getting a 1099 for the period after Paypal.  Even though I exceeded the IRS threshold requiring a 1099 with Paypal for 2020, because I didn't exceed that same threshold with mismanaged payments, Ebay refused to send me a 1099 for the remainder of 2020.  Ebay's advice!! Take my Paypal 1099 and the Ebay transaction report to a tax expert and pay him to figure it out. When I asked who is going to pay for that tax man's service, Ebay had no answer. TAKE ME BACK TO PAPAL!! 

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@tim-gloria  Yes, I have seen that report.  Since I am a small seller I just used the performance> sales report to get my gross and net income started... This does not include refunds or canceled sales though so you have to look elsewhere for those.    This report is not recommended though since it's not complete.  

[tim-gloria]

Think  of the thousands of sellers that are in the same position, a partial year using Paypal and remainder of the year under mismanaged payments. If the total sales exceeds the IRS taxable threshold in any way, the seller is responsible to pay taxes on it. Shouldn't Ebay be legally responsible to provide proper tax information, a 1099? And, if it fails to provide one to a seller and the seller is found in default in his taxes, shouldn't Ebay be held legally responsible? I wonder if the IRS is aware of this situation? Perhaps if they were, they would prod Ebay to do the right thing. TAKE ME BACK TO PAYPAL!!

[comics-scifi-collectibles]

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@tim-gloria wrote:

Think  of the thousands of sellers that are in the same position, a partial year using Paypal and remainder of the year under mismanaged payments. If the total sales exceeds the IRS taxable threshold in any way, the seller is responsible to pay taxes on it. Shouldn't Ebay be legally responsible to provide proper tax information, a 1099? And, if it fails to provide one to a seller and the seller is found in default in his taxes, shouldn't Ebay be held legally responsible? I wonder if the IRS is aware of this situation? Perhaps if they were, they would prod Ebay to do the right thing. TAKE ME BACK TO PAYPAL!!

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@tim-gloria  Each seller is responsible for their own tax obligations so it will never fall back on eBay.

Since Adyen didn't process enough funds to trigger the requirement for a 1099k in your state one can NOT be issued.   It would be nice if it was possible though.

[nobody*s_perfect]

"If the total sales exceeds the IRS taxable threshold in any way, the seller is responsible to pay taxes on it.

Oh, boy that's not correct.  You are supposed to report your eBay income even if you don't meet the thresholds.  eBay is not your accounting service; they will only report what the feds (or your state) require them to.  

Each payment processor (such as eBay or PayPal) operates independently and totals the funds that THEY have processed for you. Thus a seller in transition could get two 1099's or one or none.