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.

[tsme35]

also why Missouri sellers were sent 1099's for 2020 and 2021, Missouri does not have a lower threshold, Straight from my CPA

[monroe67]

Shipscript says:
"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."

Perfect, absolutely concise, and completely true answer !!  

I tried to write a response, but it was growing into the length of a master's dissertation, so I canceled it.  

It's perfectly reasonable for an average recipient of a 1099-K not to know every detail of how and when it was created and all about the transmission of the info to taxing authorities, federal and/or state.  We know what we sell here.  We know our jobs, we know our interests, we know our communities.   Thank you for  your answer!

[dwaopd_0]

I hope that’s the case but I’m dubious at best. I would get it officially from eBay before you shine on your 1099.  Personally. I hope you’re right.

[for-sale-great-stuff]

Being in California good to know my 1099-K is null and void... QUESTION!! The Gross Amount shown on the 1099-K is $7,000 higher then what eBay paid me in 2021, or Managed Payments ,, direct deposit, so what else are they including in the 1099-K, Sales Tax Collected or something else like shipping cost or?? 

[sim152711]

I saw this mentioned late last night/early this morning, but for those CA residents affected - double check your Payments > Reports > 1099-K section right now/throughout the day.

My 1099-K was available as late as 4am this morning and has now been removed, showing as "No 1099-K form available." eBay purged the form at some point in the last 6-7 hours from my Reports section.

Seems eBay had been systematically undoing this already since some people's 1099-Ks were removed late last night and a few hours before mine. I had actively been refreshing the page and this morning it was finally gone right after this thread appeared.

eBay "unsending" (removing) these 1099s from eBayer accounts pretty much means they haven't sent anything to the IRS yet; they have the same March 31st deadline to electronically send to the IRS. Generating 1099-Ks erroneously is not the same thing as "we've already sent this to the IRS LOL you're screwed if you're not reporting." But I can definitely understand why some people would be paranoid. 

Personally, i'm letting this ride, there's no reason for eBay to remove my 1099-K from my Reports section when I was under both 2021 thresholds unless they really were taking action. But to each his/her own!

[bab_8894]

I agree, with them 'removing' it, does indicate they are not being sent. It they are sent to the IRS/State they are required to send it to the recipients and if they don't their is penalties for eBay (i think).   Now, if Missouri sellers could get an answer to the doubling up of 2020/2021, that would be great because they should get the same consideration as CA if the 2020 is a mistake.

[tsme35]

I just got off the phone with my CPA and MO did not change any threshold for the 1099k, I'm pretty sure he knows what he's talking about

[buyselljack2016]

@for-sale-great-stuff 

It includes everything that the BUYER paid YOU. Gross.

It does not include sales tax.

It does not account for eBay fees. you have to deduct those to find income

It does not account for shipping purchased by you through eBay, or elsewhere. You have to deduct that to find income .

It does not account for refunds that you made. You have to deduct that to find income

[wastingtime101]

---

@caldreamer wrote:

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.

---

eBay is not an app-based driving service.

[for-sale-great-stuff]

Jasmen,,, I just checked and my 1099-K is still on my account. Any Idea how many hours or days till it is Removed from my account???

Thanks,, Robert

[h.s.n.rox]

Just got this in my eBay messages; looks like they caught their mistake after all.

[lightlily_arts]

I was one of the California sellers that received a 1099-K from eBay.   Today I received a message stating that it was incorrectly provided and was not being submitted to either the state or IRS. The only reason I was upset was because the numbers eBay reported were  grossly  incorrect.  The 1099 I received reported a total gross that exceeded my actual amount by $3200.  Still I plan to follow up with eBay to determine why there was such a large discrepancy to make sure that it doesn't happen for 2022.

[sim152711]

Can confirm, I also just received this same email a couple minutes ago...looks like I would have been right to let it ride even if eBay never officially acknowledged it. But i'm glad they did and corrected it!

[kingofc21]

I was sent a 1099k this year and have been on the phone and messaging for days that they were incorrect for sending me one. I received this today from EBay:

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.

At this this has been resolved. 😎

[chris90242]

I just got the exact same message.  How much can we trust eBay that they didn't send it to the IRS?