eBay

keziak · ‎12-20-2020

I am wondering if I will get a 1099 from ebay this year. Is the document based on total or net sales? If total I may just squeak in under the wire if I make enough sales by the end of the month. But I will be well below the $20K threshold if based on net sales.

valueaddedresource · ‎01-23-2021

@valueaddedresource wrote:
Just as a hypothetical, if the actual flow of money were to look like this, what amount do you think would qualify as "total reportable payment transactions for each participating payee" assuming the payee in question is the seller?

Follow up hypothetical question - again if the above money flow scenario were in play, could there at least potentially be a difference between "money never paid to or received by the seller" and "adjustments for credits, cash equivalents, discount amounts, fees, refunded amounts"?

payments_team@ebay · ‎01-25-2021

payments_team@ebay wrote:

@valueaddedresource wrote:

@keziak wrote:

Those 2 paragraphs seem to contradict each other. Does the total include the sales tax or not?

@keziak - to me it sounds like eBay will include seller collected tax in the 1099K (because it was paid to you, the seller), but will not include Marketplace Facilitator tax (because it was paid to eBay to remit to the state, not to the seller).

Maybe payments_team@ebay can clarify this for us.

@valueaddedresource we don't have an answer to this specific question so we've requested more information. When we know more then we will share it here.

@valueaddedresource we received clarification on this. Seller collected sales tax will be included on the 1099-K form. eBay collected sales tax will not be included on the 1099-K form.

For account specific Payments support please request contact from a payments-trained teammate by accessing any of the Help Pages related to payments and using the 'Have us call you' feature at the bottom of the page

valueaddedresource · ‎01-25-2021

payments_team@ebay wrote:
payments_team@ebay wrote:
@valueaddedresource wrote:
@keziak wrote:
Those 2 paragraphs seem to contradict each other. Does the total include the sales tax or not?
@keziak - to me it sounds like eBay will include seller collected tax in the 1099K (because it was paid to you, the seller), but will not include Marketplace Facilitator tax (because it was paid to eBay to remit to the state, not to the seller).

Maybe payments_team@ebay can clarify this for us.
@valueaddedresource we don't have an answer to this specific question so we've requested more information. When we know more then we will share it here.
@valueaddedresource we received clarification on this. Seller collected sales tax will be included on the 1099-K form. eBay collected sales tax will not be included on the 1099-K form.

Thank you payments_team@ebay !

mam98031 · ‎01-25-2021

@valueaddedresource wrote:
payments_team@ebay wrote:
payments_team@ebay wrote:
@valueaddedresource wrote:
@keziak wrote:
Those 2 paragraphs seem to contradict each other. Does the total include the sales tax or not?
@keziak - to me it sounds like eBay will include seller collected tax in the 1099K (because it was paid to you, the seller), but will not include Marketplace Facilitator tax (because it was paid to eBay to remit to the state, not to the seller).

Maybe payments_team@ebay can clarify this for us.
@valueaddedresource we don't have an answer to this specific question so we've requested more information. When we know more then we will share it here.
@valueaddedresource we received clarification on this. Seller collected sales tax will be included on the 1099-K form. eBay collected sales tax will not be included on the 1099-K form.
Thank you payments_team@ebay !

I understand that you feel this supports what you have previously said, however it likely does not. They are going by what their current policy page reads and it is still incorrect. I've explained this a few times and I get it that you disagree. But this really changes nothing.

As you yourself have pointed out on various different subjects, Ebay makes mistakes. This is one of them. IRS rules on 1099Ks clearly disagrees with Ebay's position.

With that said, this doesn't have to be a serious issue for ANY seller. The MP detailed transaction downloadable report now has the Ebay collected sales tax on it. So if IRS ever takes an issue with you on how you have filed your taxes in regards to the Ebay collected sales tax, you will have a report that will clarify for them and resolve any issue that IRS might have with the seller. With Ebay, that may be a different matter but then that isn't our problem. That is between Ebay and IRS. For us we can protect ourselves by having the reports ready if needed.

payments_team@ebay

mam98031 • Volunteer Community Member • Buyer/Seller since 1999

valueaddedresource · ‎01-25-2021

@mam98031 - You'll get no argument from me that it is a good thing for sellers to have record of eBay collected tax in the transaction reports in case they ever need it, whether that is for IRS purposes or anything else. I'm 100% in favor of sellers having access to more data vs less.

As long as sellers understand how the number the IRS will receive from eBay is calculated, they can work with their tax professionals to decide the best way forward. Having confirmation from the payments team that the policy page in question still accurately reflects eBay's position and how they are proceeding in issuing the 1099K provides that understanding and a little extra documentation just in case it is ever needed.

As far as whether eBay's policy is incorrect, the way I see it is if Adyen is possibly splitting the buyer's payment and paying the eBay collected tax directly to eBay rather than the seller account, that may not be all that different from how things were with PayPal prior to November 2019 when the eBay collected tax was a separate transaction that was not paid to the seller.

Again, not saying I know for a fact that eBay is right, but I'm willing to at least entertain the possibility. You and I just have a different way of looking at this and that's ok, it's not personal.

I've been encouraged lately at how responsive Harry Temkin has been on some other issues. I know this issue may not technically be under his purview, but if it is something you strongly feel is an important issue for sellers or that the way eBay is handling this is wrong and could have a negative impact on sellers, I'm sure he'd be open to having that discussion.

dbfolks166mt · ‎01-30-2021

Depends on which state you live in. I never achieved the thresholds for the federal reporting but the state of Virginia threshold is $600 and 0 items. Yes I got a 1099 already.

mr_lincoln · ‎01-30-2021

@valueaddedresource Thought that you might like to know that eBay's CSV database sales totals AND the 1099K they sent me are almost $ 600.00 off ... the 1099K is LOW compared to the CSV totals for the same period (Aug 7 entry in to MP to the end of the year).

I KNEW THEY WOULDN'T GET ANY OF THIS RIGHT! I could see "maybe" being off by a couple of bucks but almost $ 600 is inexcusable ... they really have no business handling money other then sitting back and getting paid like the did with paypal ...

Regards,
Mr. Lincoln - Community Mentor

mam98031 · ‎01-30-2021

@mr_lincoln wrote:
@valueaddedresource Thought that you might like to know that eBay's CSV database sales totals AND the 1099K they sent me are almost $ 600.00 off ... the 1099K is LOW compared to the CSV totals for the same period (Aug 7 entry in to MP to the end of the year).
I KNEW THEY WOULDN'T GET ANY OF THIS RIGHT! I could see "maybe" being off by a couple of bucks but almost $ 600 is inexcusable ... they really have no business handling money other then sitting back and getting paid like the did with paypal ...

Have you identified what the discrepancy is?

mam98031 • Volunteer Community Member • Buyer/Seller since 1999

valueaddedresource · ‎01-30-2021

Thanks for the heads up @mr_lincoln ! Definitely interested to hear if you figure out what the discrepancy is. 👍

ronsam-197 · ‎01-30-2021

IF the sales tax is going direct to ebay to be paid to the states then it seems the sellers shouldn't be charged a fee for processing said sales tax.

valueaddedresource · ‎01-30-2021

@ronsam-197 wrote:
IF the sales tax is going direct to ebay to be paid to the states then it seems the sellers shouldn't be charged a fee for processing said sales tax.

@ronsam-197 you won't get an argument out of me on that one. 😊

mr_lincoln · ‎01-30-2021

@valueaddedresource, @mam98031

Since you both asked about the discrepancy I am replying simultaneously ... of course I have figured it out LOL! But I really need eBay to clarify what I am seeing ... I got the discrepancy down to 19 cents with just some quick math. Maybe they explained this on their 1099K info but I doubt it. Okay, strap in kids, this gets complicated so I'll go slow for the folks in the back of the room.

Below is a screen shot from the CSV file from 4Q20. This must be the new and improved version Mam has previously mentioned they were coming out with, changes but we did not know what they were if memory servers from her reporting. New Transaction terms showed up in Column B. Previously we got three, "Order", "Refund", "Shipping label". Now we have five, they added "Claim" and "Hold". Holds are returns or refunds through the eBay claim process BUT in my mind they Should be kept as Orders and then shown as Refunds ... I changed the terminology on MY CSV which is how PayPal's CSVs has worked for years ... if I back out the HOLD amounts and adjust the Claim amount back in the difference between CSV reports and the 1099K is 19 cents.

The way they are handling this would pose a problem with sales at the end of one year recorded as Orders and then Returns and Refunds occurring at the beginning of the following year on some of those transactions. They really need to put it back the way it was with the three terms of Orders, Refunds, Shipping labels and not confuse the issue with the Hold and Claim terms ... you see, the Schedule C allows for Refunds as a deduction so eBay simply needs to be consistent with that and not create new categories for amounts.

Column C is the transaction ref and it pairs the amounts in column K ... columns have been narrowed to hide some of the transactions refs and some blocked out completely.

Regards,
Mr. Lincoln - Community Mentor

comics-scifi-collectibles · ‎01-30-2021

@mr_lincoln wrote:
@valueaddedresource, @mam98031

Since you both asked about the discrepancy I am replying simultaneously ... of course I have figured it out LOL! But I really need eBay to clarify what I am seeing ... I got the discrepancy down to 19 cents with just some quick math. Maybe they explained this on their 1099K info but I doubt it. Okay, strap in kids, this gets complicated so I'll go slow for the folks in the back of the room.

Below is a screen shot from the CSV file from 4Q20. This must be the new and improved version Mam has previously mentioned they were coming out with, changes but we did not know what they were if memory servers from her reporting. New Transaction terms showed up in Column B. Previously we got three, "Order", "Refund", "Shipping label". Now we have five, they added "Claim" and "Hold". Holds are returns or refunds through the eBay claim process BUT in my mind they Should be kept as Orders and then shown as Refunds ... I changed the terminology on MY CSV which is how PayPal's CSVs has worked for years ... if I back out the HOLD amounts and adjust the Claim amount back in the difference between CSV reports and the 1099K is 19 cents.

The way they are handling this would pose a problem with sales at the end of one year recorded as Orders and then Returns and Refunds occurring at the beginning of the following year on some of those transactions. They really need to put it back the way it was with the three terms of Orders, Refunds, Shipping labels and not confuse the issue with the Hold and Claim terms ... you see, the Schedule C allows for Refunds as a deduction so eBay simply needs to be consistent with that and not create new categories for amounts.
Column C is the transaction ref and it pairs the amounts in column K ... columns have been narrowed to hide some of the transactions refs and some blocked out completely.

@mr_lincoln. Which report is this? What is the report path .

Comics-scifi_collectibles Volunteer Community Mentor
Member since 2003

mr_lincoln · ‎01-30-2021

@comics-scifi-collectibles Report path:

-Seller Hub

-Payments tab

-Reports (in the left gutter)

-Date range programmable CSV file - opens in a spreadsheet program (pic in my previous post,

sorted by Column B transaction type).

Regards,
Mr. Lincoln - Community Mentor

valueaddedresource · ‎02-01-2021

@mr_lincoln the payments team just made an announcement about 1099-Ks

https://community.ebay.com/t5/Payments/Form-1099-K-Detailed-Report

and we now have a 1099-K detailed report option in Payments under Reports.

Check it out and please let us know if the 1099-K Detailed report is any different than the regular Transaction report as far a what you are seeing. 😊