Ebay’s Incorrect Message about Taxes

[iart]

We’ve been paying our taxes on eBay for about 20 years.

We’ve been getting 1099s from eBay for many years.

For several years we’ve been paying our taxes quarterly to avoid IRS fines.

We use a fairly expensive CPA to avoid any issues.

Today we got a message from eBay including “We’re reaching out to you because your name and/or Taxpayer Identification Number (“TIN”) on your eBay account do not match IRS records.” And a threat to withhold 24% of sales if we don’t.

We got a similar note a few months ago, communicated with eBay and, basically, it just seemed like they were trying to create a problem between us and the IRS. It was resolved, AFAIK.

Is everyone getting this note? Anyone in the same situation as we are getting this note? Anyone know how to resolve this without the hassle of trying to connect with CS?

Very frustrating.

[heckofagame]

Good luck to all of you. I hope it turns out to be an easy fix.

[treasuretrove952]

So under Business details the business name should be my name and not my ebays stores name correct? 

[albany_sellers]

I got this too and am at a complete loss as to what i should even do.

[albany_sellers]

We will see. I added my name as the business name, but I hate that I will never know until it's too late if that was why I got this message.

[iart]

"If you are a sole proprietor, you need to use your name as the business name (not a DBA) and your SSN, not an EIN. "

I do exactly that. And always have.

[iart]

I'm sorry that so many others are having the same problems with this as we are. But it is comforting. lol

[albany_sellers]

If that was the issue, it should be fixed on my end then. I just don't know how to confirm that without waiting until the end of the month and seeing if my account has issues or money is taken from me.

[nanniestreasurechest]

I'm pretty sure the IRS sent Ebay a notice that names or numbers weren't matching on some of last year's 1099's.  The company I used to work for would get these notices just about every year.   Sometimes it would be only one business and sometimes it would be more.    Sometimes it's just a matter of an initial, middle name or a DBA.   With our company it seemed to happen more with DBA's.   The 1099 information should match your registered business name or personal name on your tax forms.    If it doesn't, then Ebay will get the notice from IRS. 

[nanniestreasurechest]

Also check the number that is on the 1099 Ebay sent you.  It's not uncommon that a mistake was made with the number on the form when it was generated and it was sent in to the IRS that way. 

[stainlessenginecovers]

Curious how you (and others stating the same) are 'getting 1099's from eBay for YEARS'?? They only began collecting and then issuing 1099's no more than 4 years ago??

[acessplit]

So looks like eBay used my stores username/name instead of my legal name on my 2021 1099k forms. Is this notice because of that? Is eBay actively sending the wrong information to the IRS?

[luckythewinner]

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@stainlessenginecovers wrote:

Curious how you (and others stating the same) are 'getting 1099's from eBay for YEARS'?? They only began collecting and then issuing 1099's no more than 4 years ago??

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Technically true, because eBay did not process payments until 2018 or so. 

But the 1099-K was first required in 2012, and sellers received them from PayPal starting in that year.

And since sellers were required to accept PayPal and eBay owned PayPal at the time, most people would not make a distinction between the two. 

[albany_sellers]

I spoke with a rep, and while I do not always have the most confidence in what they tell me, it sounds like that is the issue. The rep I spoke to said they have been getting calls all day about that, and that it is indeed the store name being listed as the business name, rather than your legal name being listed that is the problem.

It makes sense, and is a pretty dumb problem to have when it could have so easily been avoided.

[Anonymous]

I have the exact same situation. Then when I tried to check my personal information, I was caught in a redirection "loop" and not even able to log in. I'm suspecting it has something to do with updated and item specifics. This is very frustrating for sellers! The "item specifics" is getting out of hand. 

eBay, Please listen to your sellers and stop messing with item specifics that are supposed to make the site better, but end up causing more issues than helping anyone. 

This seems to be affecting sales, our ability to list, and our customer's ability to purchase. 

These item specifics are not helping anyone. I can tell you most buyers don't even bother to read the measurements we put in our descriptions. 

Please find a better way!!!!  As a full time seller we rely on our eBay income and this is hurting everyone's bottom line.

[craftforever]

Yes. I am in the same situation! eBay used my business name instead of my legal name in the 1099K form. I am sole proprietor of the business. I have no TIN. 

On other platform or previous money processed by PayPal, they just used my legal name and SSN in my 1099Ks. Those were fine! 

I was frustrated the whole day yesterday because eBay told me to update the name/TIN (or SSN). However, the link did not work. Fortunately, today everything works and I changed my business name to my legal name. I hope it works. I suppose eBay will just feed the Business Name and SSN to IRS. The problem is on eBay but the troubles are on us!