How to handle 1099-K when you are a department of local government using eBay

[jmrmclhr]

Hello.

I am seeking counsel about a government entity selling on eBay.  Our museum (a department of county government with 70% of our budget coming from the county and 30% coming from traditional fundraising methods) buys and sells items on eBay sporadically.  Years ago when we set up the account I had to use my own SSN as they required one.  The bank account belongs to our museum, our address is our museum’s, etc.  Just my name and SSN were required.  Back then I don’t know if there even was an option for establishing an account as a government entity.  Regardless, I set it up as an individual.

Anyhow, for the first time ever we sold over $600 worth of stuff (because one was a large ticket item), and starting on January 1, 2023, eBay and other marketplaces are required by the IRS to issue a Form 1099-K for all sellers whose sales exceed $600.  Now I have to fill out a 1099-K providing all of my personal info and claim it on my own taxes even though I didn't receive any income from this.

My question to you is this:  do any of you who work for a municipally supported museum sell on eBay?  If so, how is it registered?  Through a staff member?  As a unit of government?  How do you navigate the SSN and tax issues?

I would greatly appreciate any suggestions with how to move forward with this situation. 

[mam98031]

You need to contact Ebay BEFORE you sell more stuff.  Your SSN does not belong on this account.  If you have it set up in the Museums Name and their bank account, you should be using the Tax ID for the Museum on the account.  

If the Museum is a properly set up Charity with the IRS, you need to submit that paperwork too as it will reduce your selling fees.  If the Museum is not set up as a Charity, this just ignor this paragraph.

But get your data on your account corrected ASAP.

I would suggest that you contact Ebay for Business on Facebook or Twitter for the better trained CSRs.

Here are your options for contacting Ebay Customer Service.  Please be aware that for social media CS, you send them a Private Message and briefly explain what your problem or issue is.  Feel free to leave your Name, address, phone number and/or your email address in this message.  It is private and secure and it may help to speed up the response for you.

https://twitter.com/askebay

https://www.facebook.com/eBay/

Your options will be on the left.  If you use the link below you can only get to the Automated Assistant or Chat box type AGENT in the box and hit enter. You will then get more options.  Not all options are available 24/7.  It will depend on staffing available.  So sometimes you can request a call back and sometimes you can't.  Sometimes you have the Chat option available and other times it won't me.  If it is important to you to use one of those options, just try back later.

If you use a cell phone or other mobile device, you may need to turn off your Spam filter so that Ebay can call you.

If you are a seller outside of the US or Canada, you will need to use the Chat Option.

https://www.ebay.com/help/home

[mam98031]

You might consider changing your ID for Ebay to be the Museums name or something that better represents the actual owner of this account.  If you need help doing that, just ask.

[monica-sells]

After you follow the advice about changing the info on the account....

I am not a legal counselor...nor am I an accountant...

but it seems to me the easiest way to deal with this oversight is to ask the accountant for the museum.....

otherwise, simply claim the 1099 income, deduct the expenses, etc...

and then claim the resulting amount as a charitable contribution....

(it may not be a 'wash' but it would be close)

[tobaccocardyahoo]

I concur with the suggestion you ask the museum's accountant for help.

You have violated the spirit and perhaps the letter of the law.

If the account is not associated with the museum on Ebay, you are responsible for any tax liability.

If it is associated with the account, it should be registered with the museum's EIN.

You will probably get a 1099k under your social security number, even if you change it now.

[maxine*j]

Contact Monroe County Corporate Counsel Office and / or Monroe County Finance Department.   Who knows what kind of local ordinances you may be breaking by buying property for, and selling off the property of, the museum using an eBay account with your personal SSN.  I don 't mean that you are in any deep trouble but, really, this is something that you need to take care of in consultation with the County.

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