IRS announces delay in new $600 1099-K tax reporting threshold

[sheila@ebay]

Please check out the 1099k reporting threshold announcement from December 29th, here. This announcement should cover the majority of 1099 questions.

Have more questions that aren't covered in the announcement? Please post your questions in this thread.

[nobody*s_perfect]

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@thebricktank wrote:

Well I got one and didnt meet either threshold last year, so I guess they’re just erring on the side of blasting them out.

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But you're in New Jersey, and you apparently did meet the much lower NJ threshold.

[dbfolks166mt]

I’m annoyed as I had a couple thousand in sales in DC, and they’re applying the 600 minimum. Lots of hassle for no reason. 

     That is because DC has their own 1099-K issuance threshold. I live in VA which has also had a $600 issuance threshold since 2020. Actually since I have always paid my taxes on eBay revenue I find the 1099's, yes I get multiples from PayPal, Venmo, etc., to be convenient in comparing my own accounting records to eBay's. 

     Given the Federal governments decision to postpone the new issuance threshold don't be surprised if more states begin to pass their own threshold issuance laws. There are already 10 states, possibly 11, with their own established thresholds. See shipscript posting. 

DC is such a poorly governed and managed city. I can't argue with you on that one. 😀

[dbrennanbach70]

Ebay did not comply with the delay!  I received a 1099k today January 31st.  Only a few dozen transactions and well below the reporting dollar amount - thousands below!!!  

[nobody*s_perfect]

But what state do you live in? As detailed in an earlier post, 9 states and DC have set thresholds that are much lower than the federal level; most of them are set at $600.

[shipscript]

@dbrennanbach70 

States with 1099-K filing thresholds for 2022 that differ from the IRS:.

https://blog.taxact.com/understand-1099-k-form/

• Arkansas – $2,500 threshold
• District of Columbia – $600 threshold
• Illinois – $600 threshold (or $1000 and 4 transactions, stated on another site)
• Maryland – $600 threshold
• Massachusetts – $600 threshold
• Mississippi – $600
• New Jersey – $1,000 threshold
• Rhode Island – $100 threshold
• Vermont – $600 threshold
• Virginia – $600 threshold

[babclassics]

I just got 2 of my 1099-Ks today from eBay.   They are NOT using my TIN on the forms.  They are using my SSN on both forms.  I checked and last year (2021 filing) both forms correctly used my TIN, and it is still correct in my business settings.

Me thinks you are going to have a huge flood of pushback on this one.  Suggest posting an eBay response on getting corrected 1099-Ks   Thanks.

[slippinjimmy]

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@babclassics wrote:

I just got 2 of my 1099-Ks today from eBay.   They are NOT using my TIN on the forms.  They are using my SSN on both forms.  I checked and last year (2021 filing) both forms correctly used my TIN, and it is still correct in my business settings.

Me thinks you are going to have a huge flood of pushback on this one.  Suggest posting an eBay response on getting corrected 1099-Ks   Thanks.

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If you registered for MP using your TIN where did eBay get your SSN?

[shipscript]

@babclassics 

Are you a single-member LLC?

Does your linked bank use your EIN or your SSN?

Are you listed as a "stakeholder" on your eBay account or as the owner of your eBay account?

[babclassics]

They required my to give them both numbers over time, tho I don't remember the exact details... it has been years.

And like I said,  they just reverted to my SSN in 2023 only.  They had both number before that and still do.  No way to remove SSN I can find.

[babclassics]

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@shipscript wrote:

@babclassics 

Are you a single-member LLC?

Does your linked bank use your EIN or your SSN?

Are you listed as a "stakeholder" on your eBay account or as the owner of your eBay account?

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. Sole Proprietor

. EIN

. That choice is not offered for Sole Proprietor / Single LLC

[pburn]

@babclassics 

From this IRS document, in part:  

Understanding Your Form 1099-K 

"If there is an error on the form, request a corrected Form 1099-K from the PSE. Keep a copy of any corrected Form 1099-K you receive with your records as well as any correspondence with the PSE."

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@babclassics wrote:

Me thinks you are going to have a huge flood of pushback on this one.

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P.S. If that's a riff on the Shakespeare quote, it's "methinks," not "me thinks."

[shipscript]

@babclassics 

eBay has failed to apply an EIN to single-member LLCs, and the same underlying issue might be affecting sole proprietors with an EIN.  This issue likely started with enrollment in Managed Payments. Since both of those business entities are allowed to use SSN or EIN, depending on the circumstances, I would suspect something got standardized along the way within Managed Payments. I think this needs to be taken up with eBay, along with the LLC issue. Is your EIN under the exact same name assigned to your bank account, eBay account, and SSN?

We are hoping to see the tax team on the monthly chat on Feb 8 (second Wednesday of the month).

I would suggest asking the tough question about why eBay is using the SSN instead of the EIN of sole proprietors and LLCs. Perhaps there is a legal reason or convoluted convenience reason.

https://community.ebay.com/t5/Monthly-Chat-with-eBay-Staff/bd-p/weekly-chat

[wastingtime101]

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@babclassics wrote:

I just got 2 of my 1099-Ks today from eBay.   They are NOT using my TIN on the forms.  They are using my SSN on both forms.  I checked and last year (2021 filing) both forms correctly used my TIN, and it is still correct in my business settings.

Me thinks you are going to have a huge flood of pushback on this one.  Suggest posting an eBay response on getting corrected 1099-Ks   Thanks.

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Several others reporting the same @babclassics 

https://community.ebay.com/t5/Selling/Wrong-issued-1099-K-on-my-name-Not-on-LLC/m-p/33522480#M215456...

[mrace72]

If all you do is sell old personal belonging

[mrace72]

If all you do is sell old personal belongings, but you have a lot of transactions, do you need to list each individual item separately or can you just aggregate for the year?   I have 94 transactions and don't know how I would populate 94 entries.  I am not a store.   Can I just aggregate?