1099-k help

[fitburse]

Hello,

So I have to file the 1099-k for 2017.

I'm pretty new to this but what information would I need to take to my accountant?

Any information from eBay that I may need to provide? Also, I downloaded my 1099k reconciliation. Is that my total sales for 2017? I would greatly appreciate all help and comments. Thank you!

[inthewoodspam]

I'm positive that whether or not you receive a 1099k doesn't matter to the IRS as far as paying taxes on profit goes. 

Around 2005 I had a friend get audited.  She hadn't turned in anything about ebay so they charged her back taxes, and also went back several more years and charged her for those too.  She ended up in a very bad place and owed probably way more (with penalties and no records) than she would have paid had she turned it in all along.   She never looked like a "business" so to speak either. 

[takeeta]

It's a State decision, has nothing to do with the Federal government. IRS only requires reporting over $20,000 in sales

[takeeta]

Call eBay and then call Paypal. They will help you located your invoices, fees, and shipping costs.

[partial*eclipse]

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wrote:
It's a State decision, has nothing to do with the Federal government. IRS only requires reporting over $20,000 in sales

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Clarification: IRS only requires PayPal to send a 1099-K for over $20K in sales.  The threshold affects PayPal's reporting obligations.  That has nothing to do with the user's responsibility to report their income.  The requirement affects PayPal, not the taxpayer.

[the*dog*ate*my*tablecloth]

@moeyt2010I don't agree with a lot of what Trump does but why do you think he should support people committing tax evasion? 

[thatsallfolks]

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wrote:

"Then on Feb 2nd I received an email advising me that didn't apply to me and I'd gotten the email in error since I don't live in those states."

Lucky you.

Sadly, I don't see President Trump interefering at all with this, so more states will be following suit 😞 

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Right, because the Republican Party is the party of state’s rights. Their reason for existence is to allow each state to make its own decisions.

[mrgq041276]

I just received one of these 1099k forms for the first time. VT and MA are the only two states so far that have to get them for $600 or over in sales. Pulled all my listings and will not sell again on eBay or through PayPal even private sales.. There was no warning about this and I am pretty ticked off

[mrgq041276]

Just received a 1099K for the first time from PayPal. Threshold was 20k in years prior. Now VT and MA are requiring anything over $600 to receive one. Pretty angry as there was no warning. Just pulled all of my eBay listings and will never sell through the site again, or use PayPal for sales..

[partial*eclipse]

What exactly are you angry about?

The states' new legislation affects ALL merchant payment processes, not just eBay and PayPal.

https://www.mass.gov/service-details/new-massachusetts-reporting-requirements-for-third-party-settle...

[mrgq041276]

There was no formal warning sent to PayPal members in these states. Pretty sad limit placed on VT and MA sellers. I am done, and hope other sellers follow suit, so that the two states don't make what they are hoping for. Used goods have already been taxed. If not a business; that $600 threshold is pathetic. 

[the*dog*ate*my*tablecloth]

You owed taxes regardless of your 1099 status. I don't know what you're angry about unless you weren't paying taxes you should have been? It seems like a lot of angst just because you got a form in the mail.

[mrgq041276]

https://esellercafe.com/massachusetts-and-vermont-sellers-surprised-by-1099-k-forms/

[mrgq041276]

https://esellercafe.com/massachusetts-and-vermont-sellers-surprised-by-1099-k-forms/

[the*dog*ate*my*tablecloth]

The article implies that sellers do not have to pay taxes unless they get a 1099. We all know that is not true. If you calculate your income and it is high enough to be taxable then it is taxable whether the seller gets a 1099 or not. To imply otherwise could open a seller up to huge fines and penalties.

[slippinjimmy]

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wrote:

https://esellercafe.com/massachusetts-and-vermont-sellers-surprised-by-1099-k-forms/

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A sellers posted just yesterday who was surprised eBay were after them for Active Content. this is something that eBay has been warning about for almost TWO YEARS!!!! People who ignore everything are usually surprised by this stuff while those that pay attention are not.

In any event, receiving a 1099 or not ALL business income is reportable right from the first Dollar of revenue. Those that do not report risk a very unpleasant audit result should the IRS get around to them.

Maybe you don't understand, even if PayPal doesn't report because you are below the threshold the IRS can go to PayPal and get records of ALL your transactions from the day you opened your PayPal. The IRS will simply allot ALL your revenue as taxable income and you'll have to fight to prove you had legitimate expenses to deduct.