1099-K form sent in error by ebay

[lindaevelyn]

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!!

[clx901]

Well said! That's why I was wondering why do we have so many tax policeman here, are they the last line of defense of IRS or what?

[albertabrightalberta]

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@bbravo65 wrote:

...can anyone looks straightly into a mirror and admit no cheating in taxes...???

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*Raising hand*

I don't cheat on my taxes. I do keep good records of my basis, my costs, fees, shipping, etc. and I take every legitimate deduction allowed.

[bbravo65]

...do not listen to eBay CS...once 1099 was generated, IRS got the information, better report this 1099 when filing income tax...

...this is the list of BUSINESS EXPENSES...using this chart to legally write-off as much as possible from the profits of selling on eBay...(I had posted this list not too long ago in this forum...)

* any amount of returns (buyer's returning your items)

* inventory costs at the beginning

* any extra purchases add-on to inventory

* any costs of materials & supplies for maintaining inventory

* cost of labor (employee's salary)

* accounting (for bookkeeping or tax advisor)

* advertising

* auto expenses for vehicles which used to run business (vehicle tax, mileage when travel to purchase inventory, to Post Office dropping-off packages, etc...in any traveling which related to business's operation)

* bad debts (from business loan, or personal loan in operating business)

* bank charges

* cash shortages

* collection expense

* commissions (business's partner)

* depletion

* dues & publication

* education expenses

* employee benefits (medical, social security contribution, worker compensation insurance)

* equipment rental (computer, printer, phone, machines, etc...)

* fees (exp. eBay's fees)

* insurance

* internet

* interest-mortgage

* interest-other (exp. business loan)

* janitor

* laundry-cleaning

* legal/professional fees

* licenses/permits

* maintenance

* meals & entertainment

* miscellaneous

* offices expenses (printing papers, inks, PC, printer, pens, pencils, writing papers, etc...)

* office in home costs

* outside service

* parking

* printing

* rental business property

* repairs

* salary & wages (self)

* sales expense

* security & safety

* shipping materials & supplies

* shipping costs

* storage

* subscriptions

* supplies

* tax-business property

* tax-payroll

* tax-sales tax

* telephone (landline & cell)

* tools

* training

* uniforms

* utilities

* self-employment medical expenses

* any other business expenses

...adjusting the list according to either in-home business or B&M store...

[bbravo65]

@albertabrightalberta 

...you are legally cheating...(just kidding...!!!)

[luckythewinner]

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@clx901 wrote:

Why are we having so many tax policeman here, LOL. People are talking about they are getting the 1099k even though Ebay was not supposed to issue them one, PERIOD.

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The OP posted this: 

"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"

[coolections]

Expect a lot of shaming as many think everyone should have been giving the gov money all along.

[coolections]

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@clx901 wrote:

I was wondering why do we have so many tax policeman here?

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All these tax police I am sure have been claiming all monies including side jobs, i.e.,  babysitting, walking someone's dog, cleaning a house, or anything else along the way that they made few bucks on.

[clx901]

For those affected by the fiasco, please go back to your account and check. My 1099k info has been changed to "No 1099-K information available for this year." While the form and details was there a couple hours before. Maybe Ebay realized the mistake and was retracting the wrong 1099k issued.

[bbravo65]

...eBay's changing their rules likes flipping tortillas...

[onlyleura2780]

I just got an email from eBay which says the following....
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A recent technical issue resulted in a 1099-K form being incorrectly provided to you. Please disregard the incorrect 1099-K form. The incorrect 1099-K form was not sent to the IRS or California Franchise Tax Board.

We’re working to resolve the issue and ensure that it will not happen again. Unless you had more than $20,000 in gross sales and 200 transactions in 2021, we will not submit a 1099-K form to the IRS or the California Franchise Tax Board.

We sincerely apologize for the error and any inconvenience this may have caused.

As always, thanks for selling on eBay, and for being part of the eBay community.

The eBay Selling Team

[suckerpunchrc]

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. 

[milehigh]

I received a 1099-K in error. My transactions were less than $20,000 or 200. I do pay taxes, but eBay put the incorrect state on the form.  I moved at the end of the year. All my sales were in NC, they put MA (my new home) on the form. When I called, they said they sent all these 1099-K forms in error to sellers, but never sent to the IRS or states. 🤷‍♀️

[wildpitchsports]

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@clx901 wrote:

Well said! That's why I was wondering why do we have so many tax policeman here, are they the last line of defense of IRS or what?

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They hide under fake posting profiles to shield themselves and their own activities #1 and #2 they really believe by this change it will eliminate competition by other sellers so their pockets can grow. 

Less sellers = less buyers. Less hobbyists able to recycle funds = less sales overall. 

People will just quit.

PayPal stock tanked 25%....this is just the beginning folks.

[delgcorp411]

This is happening to me too.  I received someone else's 1099-K form in the mail with someone else's transaction info and my name/address/ssn, but with the other person's ebay account number.  And when I go to the electronic 1099-K form under my account, it says there's no 1099-K form for me because my transactions don't require one!

[kitcloudkicker23]

Why should I report stuff I sold which I already paid tax on when I purchased?  I am simply clearing out my garage and I am not even making a profit on the things I sold.  Lucky if I even break even from shipping.  How is that fair and justifiable?