mam98031 • Volunteer Community Member • Buyer/Seller since 1999
@dnasilver wrote:First eBay will not be issuing 1099's under the reporting guidelines in 2022. They will be issued in Jan/February 2023 for the tax year 2022.
Second, depending on the accounting methods you have been using would answer the question. Without knowing what method you have been using, it is impossible to give an accurate answer to your question.
Third, you might want to contact a CPA to help you. The last thing you want is an audit because ignorance of the laws and acceptable accounting practices is not a defense to an audit.
I can assure you that Ebay does not consider or consult with sellers to find out what the seller's accounting methods are before releasing 1099Ks. Whether a seller uses Cash accounting or Accrual Accounting methods means nothing to how Ebay issues their 1099Ks.
A CPA can not help either UNLESS they are familiar with how Ebay issues their 1099K, or more accurately what they include on a 1099K. Certainly a CPA should know how a 1099K is suppose to function and what the Federal rules are that guides the 1099K form. But as I stated earlier in this thread, Ebay does theirs a bit differently that most if not all other similar sites as well as PayPal. The CPA may not be aware of this.
@dnasilver wrote:I don't believe I am guessing and based on what you have stated you are not guessing either. The missing unknown link will be what is Adyen's cut off date vs eBay's cut off date vs the 1099 receivers fiscal year. Times zones do matter.
Adyen has nothing to do with the 1099K, Ebay is and has been producing and releasing this form for all sellers. An Adyen "cut of date", whatever that is, has nothing to do with a 1099K. Ebay set the policy and has control over the information and the release of the information contained in the 1099.
@dnasilver wrote:If eBay is not following GAAP, eBay will show up on the IRS radar beaming because of all the CPA's who have filed changes to eBay's 1099.
You will have to refresh my memory for me. Where did I say this? GAAP does not control what is and isn't on a 1099K, the Federal tax laws do.
My previous post was clearly is not defending how Ebay does the 1099, it simply informed the OP and others how Ebay does the form. In fact I also state there are sellers such as myself that are trying to get Ebay to do things differently and more in line with what everyone else seems to do which is by transaction date.
@heckofagame wrote:If the buyer paid in 2021, it will be part of your 2021 income. The date of the sale, in this case the day the buyer paid, is the official transaction date. The transaction is with the buyer, not eBay.
The same goes for retail. If you sell something to a customer and they pay with a credit/debit card, your processing company will deposit those funds within whatever time frame they make available, but your sale still took place the day the customer paid.
You are correct and that is how most sites compile their information for a 1099K. Ebay does not however, unless they change something this year. But last year they did it by Payout date NOT transaction date.
For anyone that doesn't believe that, do a search on the threads for sellers trying to reconcile their 1099's for 2020 and the problems they had until it was realized that Ebay was using the Payout dates.
And FYI, that doesn't breach any rule that I'm aware of with IRS. Sellers don't have the money until it is issued to us through a Payout. However like I've said a few times, everyone else uses transaction date and most of those sites don't have that money on the way to our banks either until they do their money transfer to us. I have no idea why Ebay chose this method, all I know is they did for the 2020 1099Ks.
Lets get some clear answers so that we can all be on the same page for this subject.
The policy page for 1099Ks is silent on how the numbers are actually gathered. Meaning does Ebay use the Transaction Date, the date the funds become Available for payout or the Settlement / Payout date for the purposes of Gross Receipts reported on the 1099K?
This is an extremely important question and goes to how a seller will work on reconciling the 1099K.
@jayjaspersgarage wrote:The answer is it doesn't matter because you should be reporting the gross on-line sales less expenses every year regardless of the amount.
This is where the trouble is for most sellers who get their first 1099K at the end of 2022. The IRS is going to 'look back' ten years and ask ebay and any other on-line platforms you have sold with for all your sales records since 2012 and discover who has been honest and who has not.
There will be more penalties than during a TRaider game once 2022 is over.
This is a really serious statement. Where did you read this? Please provide the link as we all need to make sure we are fully aware of this if it is true. So please take a moment and share more details.
@mam98031 wrote:
Lets get some clear answers so that we can all be on the same page for this subject.
The policy page for 1099Ks is silent on how the numbers are actually gathered. Meaning does Ebay use the Transaction Date, the date the funds become Available for payout or the Settlement / Payout date for the purposes of Gross Receipts reported on the 1099K?
This is an extremely important question and goes to how a seller will work on reconciling the 1099K.
Hey @mam98031 it's based on the transaction date. I'll pass along feedback on being more clear on that, but it's the transaction date specifically. Thanks!
