California 1099-K for 2021 : to be fixed

[shipscript]

California sellers were surprised to receive a 1099-K this year for sales over $600, when the state's requirement for 2021 affects only gig workers (like Uber drivers) who are paid over $600.

eBay reports that the 1099s have not yet been sent to the state or IRS and eBay is working on correcting that error. eBay will notify the affected sellers.

The old rules for 2021 reporting ($20,000 AND 200 transactions) are still in place for California sellers who received a 1099-K this month for those larger thresholds.

[buyselljack2016]

Do not know if it is "fact or fiction", but there have been post that state the 1099-K info is not sent to the IRS until later in Feb.

Not sure how that would make any sense when federal filing can be started on Jan 24.

[fern*wood]

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@danslai wrote:

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@shipscript wrote:

eBay reports that the 1099s have not yet been sent to the state or IRS and eBay is working on correcting that error. eBay will notify the affected sellers.

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I'm wondering what it means for eBay to correct the error. I'm well under the $20k/200 transaction thresholds and have already received the 1099-K in the mail so they cannot unsend it to me. On the 1099-K, it states "This is important tax information and is being furnished to the IRS." It is hard to believe that the 1099-K hasn't been sent to the IRS yet if I've already received it in the mail.

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I wouldn't trust they can un-ring that bell.

[shipscript]

@danslai 

IRS requires 1099s be sent to recipients by Jan 31. The payer must send those same forms to the IRS by Feb 28 if filing on paper, or by Mar 31 if filing electronically. California filing deadlines match the IRS calendar.  So eBay has until March 31 to file with the IRS.  California also participates in the IRS data sharing program, so will get their data from the IRS portal and does not require eBay to send another copy to the state.

[coffeebean832]

@shipscript- You're awesome and one of the best assets this community has. I know you have an inside track with eBay on tech issues and I'm not questioning the validity of your post at all.

Just wondering- why isn't eBay posting something 'official' and leaving it up to you, instead?

[tealt]

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@shipscript wrote:

California sellers were surprised to receive a 1099-K this year for sales over $600, when the state's requirement for 2021 affects only gig workers (like Uber drivers) who are paid over $600.

eBay reports that the 1099s have not yet been sent to the state or IRS and eBay is working on correcting that error. eBay will notify the affected sellers.

The old rules for 2021 reporting ($20,000 AND 200 transactions) are still in place for California sellers who received a 1099-K this month for those larger thresholds.

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Could  "...have not yet been sent.." be interpreted to mean that the 1099K's are in a queue to be sent?

Or am I being paranoid?

I'm assuming that the "error" referred to in that sentence is that the 1099K's were created at all.

[h.s.n.rox]

@shipscript , Can we confirm this information is current and true? My sales came no where close to the $20,000/200 transaction threshold for 2021 and I still received a 1099-K form from eBay yesterday. I planned to file my taxes this weekend and this was a complete surprise; especially since it arrived in the mail past January 31. Please advise, and thank you.

[jasmen@ebay]

@tealt on it, thanks! 

[tealt]

Thank you, Jasmen!

[shipscript]

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@tealt wrote:

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@shipscript wrote:

eBay reports that the 1099s have not yet been sent to the state or IRS and eBay is working on correcting that error.

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Could  "...have not yet been sent.." be interpreted to mean that the 1099K's are in a queue to be sent?

Or am I being paranoid?

I'm assuming that the "error" referred to in that sentence is that the 1099K's were created at all.

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@tealt 

I posted the timelines elsewhere in this thread. eBay has until Mar 31 to file, and you know big corporations will drag things out as long as possible. Then they can still ask the IRS for an extension if they haven't gotten everything fixed by then.

[shipscript]

@h.s.n.rox 

Yes, I confirmed with eBay staff before posting this thread, and that is why the thread is now pinned by staff.

[h.s.n.rox]

@shipscript  if these 1099-K forms were truly sent in error by eBay and they acknowledge that, were you informed if they are planning to send out an official notification to the sellers of that error and what to do going forward? Thanks again.

[bab_8894]

So how about other issues that we have heard about?  Will there me updates on these and other 1099k issues.

• NJ not receiving 1099 @ $1000.
• MO receiving 2020 and 2021 at the same time.

Thanks

[danslai]

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@shipscript wrote:

@danslai 

IRS requires 1099s be sent to recipients by Jan 31. The payer must send those same forms to the IRS by Feb 28 if filing on paper, or by Mar 31 if filing electronically. California filing deadlines match the IRS calendar.  So eBay has until March 31 to file with the IRS.  California also participates in the IRS data sharing program, so will get their data from the IRS portal and does not require eBay to send another copy to the state.

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Thanks for the explanation and helping to dig into this. Looking forward to what ebay has to say about all this officially.

[caldreamer]

Laws were changed  January 1, 2021, you will receive a 1099-K if you receive annual gross payments of $600 or more in settlement of third-party payment network transactions and are an app-based driver, regardless of the number of transactions.

[tealt]

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@danslai wrote:

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Thanks for the explanation and helping to dig into this. Looking forward to what ebay has to say about all this officially.

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I wonder if eBay will even publish anything officially on this.

No need, if possible, to tell the world that a high-tech company your size managed to mess up sending out 1099K's.