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!!

[ruby_deals]

I'm sure we'll eventually see the money we earned. The problem seems to be that there is no human that knows or cares enough how to get around automated processes so they can do something manually like complete a form. 

[pelequip]

Finally spoke to someone from the "upper leadership team" I was advised processing is expected to take a week plus. I submitted last Thursday and have now been told to expect nothing sooner than Friday 3/21

[hudpatrick40]

We are having the same problem. I noticed most the people responding didn't address the issue. Am I correct that you submitted a paper W-9?  To whom did you submit this to?

[pelequip]

I sent it via informationreporting@ebay.com. a lower level rep who seemed pretty knowledgeable advised me to do so. 

[itsallgood1965]

My payouts have been on hold since 3/11/25.  After 9 years of business on eBay, this is the first time.  I've been calling every day.  They say it takes 10 days, and I may get some resolution by Friday.  I'm concerned because no answers are definitive, and my small business is drowning.  I've got bills to pay!  Frankly, the last customer representative I spoke with was a little unapologetic and testy.  Does anyone have any advice?

[rumcreekss]

Yes. You will receive a paper W-9 form in the mail sent from eBay. Fill it out properly as box 3a has the appropriate classification THAT WE ALL HAVE BEEN LOOKING FOR. That classification is "Individual/sole proprietor". Scan the filled out form for your records. Send the W-9 back to eBay registered USPS with signature required.

This is not our problem. This is an eBay problem. Document everything. If your funds get held again, call and show the receipts. Don't back down.

[teklifestyle]

Yup its happening to tons of people even myself my information has not changed for years eBay put my funds on hold wanting a 147c form which is just a copy of my EIN form but they wont take my original cp575 it had to be this form. Which I had to call into the IRS and get then I uploaded it to eBay they told me 24-48 hours and my funds still on hold.. I got escalated up to a team lead and they told me they are so swamped with these they have special notifications about it. And the team is trying to resolve things within 10 days of the information being uploaded. I am going to be going on 2.5 weeks of not getting any payouts because of this and all my information is correct and has not changed. This is a disconnect between eBay and the IRS they need to get it figured out.