eBay

lindaevelyn · ‎02-03-2022

Ebay sent me a 1099-K form for 2021 tax year. However, my sales were below $6000.00 and my number of transactions below 127! So in no way would I qualify under the limits set for the year 2021 which was $20,000 and 200 transactions! Looks like someone at Ebay made a big mistake and applied the new limit of $600 to 2021 sales and didn't bother to wait until this year, 2022 when they take effect! This would mean I would have to report this to IRS on my tax return this year and pay a combined tax on it of 30% that I shouldn't have to, but under the law, I am duty bound to report any income that a filer reports to the IRS under form 1099K! I wonder how many other people this has happened to? How will ebay correct this? Will they pay the tax I owed since it is their mistake? I have contacted them and all they say is yes, this happened, especially in California, and they would fix it. But when??? I need to file my taxes and still have hear nothing from ebay. Everyone - if you got a 1099-K make sure you really were supposed to!!

mhirner · ‎02-07-2022

My thoughts exactly. The 1099 we got was based on personal items we sold from cleaning out closets, and there wasn't a profit earned. Doesn't seem right that we should have to report that on our taxes.

stratsnpauls · ‎02-07-2022

I didn't meet the reporting requirements for sales in 2021, the 1099k was a live pdf link up until a couple days ago, now it's gone,i did recieve the email stating it was a mistake and not sent to IRS, but today i recieved the paper version in the mail which says it was provided to IRS.

nocoolnamejane · ‎02-07-2022

Because sales tax and income taxes are two entirely different things.

She ❤︎ Her ❤︎ Hers

blkriv95 · ‎02-07-2022

Was on a chat with eBay and here's what they stated:

(ebay) Yes, that's correct. We are aware that 1099s were created in error for certain customers that did not meet either the state or Federal thresholds. Please don't worry, we are working on correcting these errors.

I apologize for the inconvenience. Rest assured, it will not be submitting these documents to the relevant tax agencies.

Please be assured, we are in process of sending emails to all the members who have received it incorrectly. This is a rare occurrence; I though understand it is an inconvenience for our members and thus, please consider our sincere apologies for the same.

Please be assured, many members have already received the email. Please wait upto 3-5 business days for the email. Meanwhile, I'll also forward your account details to get it checked.

(me) Anyone who received an email stating that they issued a corrected 1099, please reply to this topic.

rjvolleygod · ‎02-07-2022

I have the same issue with only 60 transactions and $700. Ebay has no email to contact which is extremely unhelpful as the people on the phone seem like temps with no knowledge on the subject. Very frustrated here. I was told it would be fixed and I would be contacted within 3 days which did not happen. FYI expect this same issue with PAYPAL as they also made the same mistake.

valueaddedresource · ‎02-08-2022

@suckerpunchrc wrote:
So, my issue is even worse because they sent someone else's 1099 K to my husband with his name and someone else's TIN/SSN! This person has over $14,000 in sales and my husband has not sold anything on eBay in years.

@suckerpunchrc @delgcorp411 - if you've received a 1099-K and did *not* sell anything at all on eBay this year, I'd suggest posting here:

https://community.ebay.com/t5/Selling/Received-a-1099-k-form-yesterday-from-ebay-I-haven-t-sold/td-p...

eBay community staff have been tagged on that thread about this issue, so hopefully they will respond soon and take IDs from affected users. Hope that helps!

apx4_33 · ‎02-08-2022

@blkriv95 wrote:
Was on a chat with eBay and here's what they stated:

(ebay) Yes, that's correct. We are aware that 1099s were created in error for certain customers that did not meet either the state or Federal thresholds. Please don't worry, we are working on correcting these errors.

I apologize for the inconvenience. Rest assured, it will not be submitting these documents to the relevant tax agencies.

Please be assured, we are in process of sending emails to all the members who have received it incorrectly. This is a rare occurrence; I though understand it is an inconvenience for our members and thus, please consider our sincere apologies for the same.

Please be assured, many members have already received the email. Please wait upto 3-5 business days for the email. Meanwhile, I'll also forward your account details to get it checked.

(me) Anyone who received an email stating that they issued a corrected 1099, please reply to this topic.

The 2021 threshold for Illinois was $1,000. Did you sell more than that?

apx4_33 · ‎02-08-2022

@rjvolleygod wrote:
I have the same issue with only 60 transactions and $700. Ebay has no email to contact which is extremely unhelpful as the people on the phone seem like temps with no knowledge on the subject. Very frustrated here. I was told it would be fixed and I would be contacted within 3 days which did not happen. FYI expect this same issue with PAYPAL as they also made the same mistake.

The 2021 threshold for Virginia was $600. There’s nothing to fix in your case.

cggr7900_42yn8plcq · ‎02-08-2022

Yesterday I bought on ebay for the first time in years, and I have never sold anything on eBay. Today I received an IRS From 1099-K for 2021 claiming that I'd had over $3,000 in sales in May. The form was from eBay Commerce Inc. in San Jose, and was addressed to me at my former address. It lists a Filer's TIN which is unknown to me, a payee's TIN which is also not connected to me, and the account number at the bottom is also not connected to me.

My immediate questions:

1. The upper part says to direct questions to eBay Customer service at 800-456-3229. Is this number truly eBay?

2. What do I do next?

frix-n-frox · ‎02-08-2022

I'm in NYS and received this for the first time ever. Just looking at it I knew there was no way my sales were as high as they were reported on this form, so I decided to audit 1 month and compare the amounts. I picked a month where I knew sales were lower. There was about a $500 discrepancy for just that month alone! Meaning that on his 1099-k ebay reported me as making more than $500 over what they have me selling in my sales report for the corresponding month.

I don't sell as a business. This has always been pure hobby for me. I sell things from my personal collection, or things I buy (in lots) that I don't want/intend to keep. I understand the tex laws change this year and I will need to start really tracking things for tax purposes. However, this was so out of left field! Ebay is over inflating my actual sales, and according to the ebay rep I spoke with, apparently this is a well-known error which resulted in so many of us receiving 1099-K's with over-inflated sal4es totals, when we didn't even have sales anywhere near the $20,000 threshold.

Ebay said "Don't worry, we kno3w and are fixing it. You'll get an email in a day or two", but the IRS still received this misinformation, so what do are those of us affected supposed to do?

valueaddedresource · ‎02-08-2022

@cggr7900_42yn8plcq wrote:
Yesterday I bought on ebay for the first time in years, and I have never sold anything on eBay. Today I received an IRS From 1099-K for 2021 claiming that I'd had over $3,000 in sales in May. The form was from eBay Commerce Inc. in San Jose, and was addressed to me at my former address. It lists a Filer's TIN which is unknown to me, a payee's TIN which is also not connected to me, and the account number at the bottom is also not connected to me.
My immediate questions:
1. The upper part says to direct questions to eBay Customer service at 800-456-3229. Is this number truly eBay?
2. What do I do next?

@cggr7900_42yn8plcq there are more reports of this here:

https://community.ebay.com/t5/Selling/Received-a-1099-k-form-yesterday-from-ebay-I-haven-t-sold/td-p...

I'd recommend adding your name on that thread as eBay community staff have been tagged there and will hopefully respond soon.

I believe that fraudsters may be using false ID info to sell on eBay and that is causing some people to receive 1099k forms even if they never knowingly set up an account or sold anything.

Here are a couple of suggestions if you think that is what has happened to you -

For help from eBay with a hacked account/account security issues go here - https://www.ebay.com/help/account/protecting-account/securing-account?id=4196

And here are some resources from the IRS about what to do if you are a victim of tax related identity theft.

https://www.irs.gov/newsroom/taxpayer-guide-to-identity-theft

modelbuilder · ‎02-08-2022

Where are you reporting this on your tax returns if you are not a business? The amount reported on 1099-K is the gross amount before eBay takes their fee, so you are basically paying tax on money you never received and unless you file a schedule C you cannot deduct any expenses or the cost of the items you sold.

dot341 · ‎02-08-2022

I received one s well.

dot341 · ‎02-08-2022

@stratsnpauls wrote:
I didn't meet the reporting requirements for sales in 2021, the 1099k was a live pdf link up until a couple days ago, now it's gone,i did recieve the email stating it was a mistake and not sent to IRS, but today i recieved the paper version in the mail which says it was provided to IRS.

I received a paper version in the mail yesterday. I am sure they did send one to the IRS. You can't unring that bell. So once again eBay has managed to stick it to me in aa huge way. Thank you for being a loyal customer the last 17 years they said. Thank you indeed.

crazymaxdeals · ‎02-08-2022

you've nothing to worry. most big corps transmit 1099 records to IRS online only and not via snail mail (deadline in Jan 31st). So you may disregard the one you received in the mail. those were just printed and mailed only to some sellers in error (and not to irs) as acknowledged by Ebay.

So< Ebay has not reported to IRS or states if you did not hit the threshold.

(Please Note: If you mention in your tax return that you got a 1099k from ebay this year, then there would be a royal mismatch, as IRS never got a copy!). So the best way to handle is to just report your ebay earnings as "other sales" for which "no 1099K was issued". Hope that answers most questions and makes you feel comfortable.