Problem with eBay's W-9 form. Payouts on hold

[rumcreekss]

Hi everyone,

I'm a sole proprietor / single member LLC. eBay put my funds on hold wanting me to update my W-9 form. Under tax classification there is a dropdown box with three options: C-Corp, S-Corp, Partnership.

I am none of those. I'm a single member LLC. Furthermore, under my "Business Info" everything is correct. Under "Tax Information" the box is checked "Rum Creek Sales and Service LLC is owned by an individual." My SSN is correct. My EIN is correct. I called eBay and they told me to "consult my tax advisor." Thanks, eBay.

Have any of you single member LLCs run into this? How did you resolve it? There SHOULD be a fourth option in that dropdown box for us but there is not. Until I get this resolved my payouts are on hold.

Please advise!!

[mtgraves7984]

@rumcreekss 

I don't know your solution, but here's another similar post. Might want to check it out for replies, too. Good luck.

W-9 Tax Withholding - The eBay Community

[lacemaker3]

@rumcreekss 

Here is an eBay Help page which offers information that should/may/could be relevant to your situation. You should click the link and search for information to help you. I have copied some FAQs that seem like they may be helpful, but there is other information there as well.

https://www.ebay.com/sellercenter/resources/changes-to-ebay-and-your-1099-k

The link in the fist screenshot goes to the IRS standard W-9 form, which you are asked to submit. This form does allow you to choose "Individual/Sole Proprietor" in Box 3A, which sounds like what you should do based on what you have said.

https://www.irs.gov/pub/irs-pdf/fw9.pdf

FYI, if you are an Individual/Sole proprietor, then you are a "disregarded entity" according to the instructions for form W-9 (see the link above).

[rumcreekss]

This is very helpful thank you. I think filling out and uploading the physical form is the way to go. Additionally, I spoke with my CPA and he suggested reporting to eBay that because I'm a disregarded entity that I report myself as a sole proprietor only.

[rumcreekss]

Yes that was exactly my same situation but with no resolve. Thank you though for your reply.

[rebootpcsllc]

I'm having the exact same issue.  Things like this REALLY give me pause that my income relies on this company.

[rin1175llc]

Hello! I called eBay yesterday and they did say this a bug on the form they're working on fixing. There's nothing you can do until they resolve it. It's a bit crazy that it went out this way, but that's the information I got around 6 PM CT yesterday.