1099-K - Reported Amounts Double

[benmcntsh]

I just received my 2021 1099-K and was surprised to see that the amounts in every box were exactly doubled from what they should be.  Has this happened to anyone else?

I contacted support and they said that they cannot help me and to consult a tax professional.  After some strong words that this is 100% an eBay error on the form they provided (over reported sales figures) they claim to be working on it.

[backpacksbymelissa]

Bologna. They did report it to the IRS. Ebay did such a great job of 'fixing it' that my total, between ebay and paypal, it now TRIPLE. 

YES, triple. Ebay reported my sales twice and then paypal, who actually processed the payments last year, ALSO submitted an amount very close to the ebay amounts. 

I would not have known this if I hadn't filed my taxes today, 4/10/22, and read them over and all THREE amounts were reported to the IRS. 

This is going to be a fun couple of YEARS coming up, trying to fix this. I hope ebay plans on paying us all back for what it is going to costs us all to fix this with the IRS. Late payments and penalty fees for money we never made and payments we never received.

We are all going to be audited. Mark my words we will all be hearing from the IRS

Thanks ALOT Ebay.

[backpacksbymelissa]

I never received a 1099-K in the mail. My amounts weren't doubled on my 1099-K online. 

But, ebay sent TWO separate amounts to the IRA. The amounts are within a couple thousand dollars of each other. Equaling DOUBLE the amounts I actually sold. 

AND, paypal also reported an amount that is very close to those 2 amounts. Reported sales reported, to the IRS, show TRIPLE my sales.

WTH.

I read my taxes papers over and it is on there as of TODAY.

[backpacksbymelissa]

Did you ever get this figured out? I would go in and look at the taxes you filed to the IRA. The actual paperwork.

I just filed today, 4/10/22, and this is what was on my papers on my federal taxes with H&R Block. There is a dollar amount infront of the dollar amounts shown. I erased the first number. 

So as of today, those amounts have been reported to the IRA. Ebay twice reported and then paypal reported the actual paypets that I received. So it looks like a made 3 times the money that I did. 

Also, I have claimed EVERY penny that I have ever received selling online. I believe this issue is going to cause alot of sellers to be 'caught up with'.  You HAVE to claim ALL money you recieve as payment.

BEN, please let us know what has happened since you first posted this. 

Also everyone keep ALL of your information from this years and next years taxes in a very safe place. WE will need them at some point.

[dbfolks166mt]

     While I do not have the specifics regarding your business financials nor do I know how H&R block prepared your taxes there are obviously some numbers that don't add up. You should have received one 1099 from eBay if you lived in a state where you exceeded the thresholds iun 2021. If you did not actually receive  1099 from eBay then I have no idea where H&R block got the numbers they used in the preparation of your taxes other than it would have had to been a figure you provided them. 

     The same applies with regards to PayPal. I live in a state where we have been getting 1099's for several years because of the lower threshold. I have been under MP for awhile so I always get one from eBay but I also receive one from PayPal, Venmo and a couple of other financial processors for financial transactions related to other forums where I also list items. 

     There could be a number of issues with your taxes. 

1. EBay messed up the 1099 and reported inflated/doubled numbers. This happened with several sellers and I believe eBay corrected and resent those 1099's. If not you need to contact the IRS to report the issue. 

2. H&R Block incorrectly calculated your taxes and reported the incorrect income on your return. 

3. There was/is a combination of errors from 1 and 2. 

     Regardless of the situation you probably need to work with H&R block to do an amended. There is a good probability that you overpaid your taxes. 

For reference if you need to call the IRS about the 1099 the hotline number is below.