I have an S corp and received 1099 from ebay from my ebay selling account

[royalsage]

Many years ago I started selling personal things on ebay

Then I started an S corp business into which went all the proceeds from my ebay sales

Now I just received a 1099 form from ebay for my personal income taxes 

So this will show up as added personal income, when it's already been accounted for in the S corp

Over the years I never converted my personal ebay selling account into a business account. 

How to deal with this?

Can I get it corrected from ebay?

I bet I'm not the only one in this situation

Any help will be greatly appreciated

Thanks

[bonjourami]

Make sure you are qualified with all these requirements.     https://www.irs.gov/businesses/small-businesses-self-employed/s-corporations

[royalsage]

Yes, been an S corp since 2003 filing taxes for my sales on ebay all that time

Now suddenly I get a 1099 and it creates all kinds of unnecessary problems. 

[monica-sells]

just brainstorming here...as long as the income is booked on your 1120 for your Corp, you can (maybe) just treat it as a "wash"

On your personal 1040 you claim the income, and "expense"...(I may not have the categories right, but I think you see what I mean....check with your accountant, it might be easier than trying to get a "corrected" 1099-K (which I doubt they can correct anyways, since you admit you never changed the payout parameters) it's Just juggling some paperwork, all above board." to your S-Corp for the same amount

[royalsage]

Thanks for your reply

I've been doing my own personal and corp taxes for a years now and this is something I don't know how to handle

I suspect I will have do drop a couple of hundreds dollars with an accountant to straighten this out

I was hoping I could do it my self

Some folks mentioned using IRS form C to adjust for it, but I took a look at that form and it might as well have been in a foreign language as far as I'm concerned

[chapeau-noir]

Any decent tax package can help you with this. https://turbotax.intuit.com/tax-tips/small-business-taxes/s-corp-taxes-an-introductory-guide/c4mldwL...

[royalsage]

Thanks I'll check that out. 

[st.matthew2012]

its a mess, I sold just over 5K, overwhelming majority of that is fees and shipping, if I have to pay an accountant, Im left with very little profit

[mr_lincoln]

Hi @royalsage 

You definitely want to work with an accountant.  Not sure what the NV laws are regarding C and S Corp but here in PA the Corporate books have to be completed by an accounting firm with information supplied by the Corp.  Additionally, Corps here are required to carry liability insurance ... 

The 1099K would simply be income for the corporation and you would benefit from deductions for running the eBay business you process through the S Corp.  Do yourself a favor and download an IRS Schedule C with instructions and read up on all the deductions that would apply to reduce the taxable income from the eBay sales. 

[lacemaker3]

---

@royalsage wrote:

Many years ago I started selling personal things on ebay

Then I started an S corp business into which went all the proceeds from my ebay sales

Now I just received a 1099 form from ebay for my personal income taxes 

So this will show up as added personal income, when it's already been accounted for in the S corp

Over the years I never converted my personal ebay selling account into a business account. 

How to deal with this?

Can I get it corrected from ebay?

I bet I'm not the only one in this situation

Any help will be greatly appreciated

Thanks

---

@royalsage,

The IRS explains what to do if you receive a 1099-K in error. In this situation, eBay can't correct it because you didn't give eBay the correct information. They can only work with what you give them, and it can't be changed retroactively.

Make sure that you change your eBay account to a business account, and give them the correct information and TIN/EIN for your S Corp, for next year. Do this ASAP, and hopefully it will not be an issue next year.

For this year, you need to file your taxes anyway. Correct the information on your personal tax return Form 1040 like this. You should explain, in as few words as possible, that the income is being reported under your S Corp, with the number for it so they can confirm.

https://www.irs.gov/businesses/what-to-do-with-form-1099-k#incorrect

[lacemaker3]

---

@mr_lincoln wrote:

Hi @royalsage 

You definitely want to work with an accountant.  Not sure what the NV laws are regarding C and S Corp but here in PA the Corporate books have to be completed by an accounting firm with information supplied by the Corp.  Additionally, Corps here are required to carry liability insurance ... 

The 1099K would simply be income for the corporation and you would benefit from deductions for running the eBay business you process through the S Corp.  Do yourself a favor and download an IRS Schedule C with instructions and read up on all the deductions that would apply to reduce the taxable income from the eBay sales. 

---

@mr_lincoln,

A Schedule C is only used by a Sole Proprietor, who is reporting their business income through their personal tax return on a 1040.

S-Corps have to file a number of tax forms, primarily Form 1120-S, U.S. Income Tax Return for an S Corporation, but not a Schedule C. Shareholders of the S-Corp use a Schedule E to report the income received from the S-Corp.

https://www.irs.gov/businesses/small-businesses-self-employed/s-corporations

I haven't done taxes for a corpora

[mam98031]

---

@st.matthew2012 wrote:

its a mess, I sold just over 5K, overwhelming majority of that is fees and shipping, if I have to pay an accountant, Im left with very little profit

---

Well you might consider revisiting some of your pricing.  You sell many items at very low prices, you have to be aware you aren't going to make much of a profit on them.  That wouldn't be Ebay's fault but how you have structured your pricing.

You do sell other stuff that give you more room for profit as well.  

Most small and casual sellers have no need to pay an accountant to do their taxes.  It is likely that with the help of a tax program, you can do your taxes on your own.  

If you want more info, just ask.

[luckythewinner]

---

@royalsage wrote:

Yes, been an S corp since 2003 filing taxes for my sales on ebay all that time

Now suddenly I get a 1099 and it creates all kinds of unnecessary problems. 

---

When you moved to eBay Managed Payments, did you put in your personal SNN instead of the Taxpayer ID for the S Corp? If so , the "unnecessary problems" would have been due to your mistake and I think it will be "necessary" to fix it.

https://www.irs.gov/businesses/what-to-do-with-form-1099-k#incorrect

If your Form 1099-K has incorrect information

If the Payee Taxpayer Identification Number (TIN) or gross payment amount is incorrect:
Request a corrected form from the issuer

• Request a corrected form from the issuer – see "Filer" on the top left corner of Form 1099-K to find the name and contact information of the issuer. If you don't recognize the issuer, contact the Payment Settlement Entity (PSE) identified on the bottom left corner of the form above your account number.
• Keep a copy of the corrected Form 1099-K with your records, along with any correspondence you have with the issuer or PSE.

Don't contact the IRS. We can't correct your Form 1099-K.

File your taxes even if you can't get a corrected form

    Don't wait to file your taxes. To file your tax return, take these steps:

If the payee Taxpayer Identification Number (TIN) is incorrect

    Report payments from the Form 1099-K and any sources of income on the appropriate tax return you normally file.