Concerning the delay of the 1099K for $600 or more

[bigbulkofatoms]

So I've read several articles online about this delay for the $600 threshold but I can't seem to find one that clearly states the time frame.  What I'm confused about is if sellers will receive a 1099k for $600 or more in January 2024 for their 2023 sales.... or if 1099k's for the $600 threshold are to begin in January 2025 for 2024 sales.  Also wondering if Ebay has made any statements about this yet, confirming that they will not send 1099k's for $600 or more for the current year (I saw nothing on the announcements page).  Thanks for any help.

[stainlessenginecovers]

As of Right This Moment- the $600 deal has been POSTPONED for another year. Meaning that Processors do NOT have to send both the Seller and the IRS a 1099 this coming January.  

So, starting in 6 days, January 1st 2023, the clock restarts on that $600 (unless they 'change' the law sometime during the year of 2023- which was the goal of the IRS, to allow time for Congress or whoever, to 'change' it. 

If it changes there will be a new amount- which could be in effect in 6 days or the following year (nobody knows for sure as 'new legislature' has not been approved yet). 

If it doesn't change and the 'postponement' doesn't get extended again, then it will be $600 collected by anyone during 2023, reported to the IRS and the Seller in early 2024. 

Again- NOBODY knows anything about this yet. 

[bigbulkofatoms]

Ty. That's how I figured it but most articles were vague and the few I read that gave any sort of timeframe seemed to contradict each other at times.

[nobody*s_perfect]

Here's the actual IRS announcement about a 1-year delay in implementing the $600 threshold.

https://www.irs.gov/newsroom/irs-announces-delay-for-implementation-of-600-reporting-threshold-for-t...

[jitalo2022]

Ebay (along with many other online selling sites) has probably lost MEGA millions in listing/final value fees this year because millions of sellers stayed under the $600 threshold that they now cancelled 1 week before the end of the year. WOW.  And, with the uncertainty of this upcoming year, 2023 will probably have millions still staying under the $600 threshold. Sites that only accept electronic type payments will be in for a hurting going forward with casual/hobby type sellers bowing out. 

[coolections]

@jitalo2022   If someone stopped selling only because they wanted to stay under $600 that is no loss at all to Ebay for two reasons. How much do you think Ebay would lose for a part timer to stop just for a few dollars short of the minimum. Also, if the seller stops there are plenty of other sellers to go around, a buyer will just pick someone else.

[dbfolks166mt]

As of Right This Moment- the $600 deal has been POSTPONED for another year. Meaning that Processors do NOT have to send both the Seller and the IRS a 1099 this coming January.  While they do not "have to" it will be interesting to see if any of the third party financial processors who have already made code changes send the 1099 anyway. It is also relevant to note that the purported delay only applies at the Federal level and not the state level. There are a number of states that already have established lower 1099 issuing thresholds and there are several third party financial processors that have their own rules as well. 

So, starting in 6 days, January 1st 2023, the clock restarts on that $600 (unless they 'change' the law sometime during the year of 2023- which was the goal of the IRS, to allow time for Congress or whoever, to 'change' it. While this may happen at the Federal level sometime in 2023 it may also be interesting to watch and see how many states set and establish their own 1099-K issuance thresholds give the potential for increased state tax income tax revenue. Similar to the action(s) the individual states took with regards to the collection of eCommerce sales tax. 

If it changes there will be a new amount- which could be in effect in 6 days or the following year (nobody knows for sure as 'new legislature' has not been approved yet). There could in fact be multiple new amounts depending on what the Federal level finally settles at and what the other 39 states that currently follow the Federal threshold do. There is the potential for 51 new thresholds. 

If it doesn't change and the 'postponement' doesn't get extended again, then it will be $600 collected by anyone during 2023, reported to the IRS and the Seller in early 2024. 

Again- NOBODY knows anything about this yet. Agree and this has the potential to become one huge cluster )%*@#($ in 2023. 

[tdrake]

I'm sure with the mega crowded categories,  whenever a tax cheat quit the honest seller's stuff got more exposure. I don't think eBay lost a nickel.

[chapeau-noir]

AND, those sellers simply lost money they could have made by continuing to sell and just filing like the rest of us, many of them probably paying a low tax bill by the time they deducted everything they're just blithely shelling out for without a clue, and banking the rest.   eTailing has long since matured into an national/international marketplace, it hasn't been a yard sale for years.  Not sure how this has been missed.

[714ricki]

Its just a one year reprieve for the sellers under $600. Beyond that, the official word is still up in the air. However, I would still encourage you to sell without worries about the 1099K, keep good records, & file your taxpaperwork without fear. 

Good luck!

[jitalo2022]

Hmmm....let's see here. Let's say 2 million part timers decide to stay under the $600 proposed threshold and sell $500 a year. Ebay fees collected on $500 about $75 x 2 million = $150 million. Those same sellers without the $600 threshold would have, say, normally sold about $5000 a year. Ebay fees collected on $5000 about $750 x 2 million= $1 billion, 150 million.  Go ahead and tell all the eBay executives who are lobbying congress to get rid of the $600 threshold that a $billion dollars in lost revenue a year is "no loss at all to Ebay". 

[buyselljack2016]

Correct, no loss. there are, and always have been more items for sale on eBay than there have been buyers to buy them, so the change from losing "sellers" results in, as coolections already posted, no (no negligible) change for ebay sales fee totals.

[buyselljack2016]

Not sure how many potential  "$5000 in sales" sellers would be scared off. The "casual/selling my closet junk" seller may cease as paperwork becomes a pain, but "$5,000" may be a bit of profit worth the simple paperwork.

Many running are the "previously unaware of their filing responsibilities", and the scofflaws.

[coolections]

There will never be in a million years 2 million sellers that used to sell $5,000 and will now only sell $600.  Another seller will just get the sale is all. Don't hold your breath thinking Ebay is going to lose business over this.

[mrgoodlite]

this is funny,   actually funny.   "Honey i am going to jump on ebay and sell $599.00 worth of stuff but then i cant sell anything for a year"  get real.  there are 16 kinds of 1099 forms AND how do you differentiate the difference of me sending you 200 bucks to just send you 200 bucks and if i bought something from you for 200 bucks using paypal or venmo or zelle or some other clearing platform.  hence the reason the IRS put this on hold because the companies do not know.  so how is the IRS or God forbid, the Congress going to know??.  keep selling