eBay

ronscolt1911 · ‎12-29-2022

What a joke to delay at the end of the year, what about those who didn't sell at all in 2022 to avoid the taxation? Pitiful.

maxine*j · ‎12-30-2022

@lonebuck-books wrote:
@glutis wrote:

One last thing, my financial advisor advised against furnishing my SSN and couldn't understand why it was being requested.

If your financial advisor didn't understand why your SSN or taxpayer ID number is being required by a marketplace facilitator that must issue 1099-K forms, you need to find a new financial advisor...

AMEN!

-

glutis · ‎12-30-2022

3rd party market platforms, are required by law to provide a 1099, NOT obtain the information to go on it, including your SSN. It's your responsibility to provide the information on the 1099 to the IRS.

If you're selling on a 3rd part marketplace, your financial institution is identity verification and at most the last 4 of your SSN was required. 3rd party marketplaces are not the tax assessor or the enforcement arm of the IRS.

As an example, read the policy on Zelle. This is the legit way.

soh.maryl · ‎12-30-2022

You understand that this is an IRS decision, not eBay, right?

glutis · ‎12-30-2022

It's amazing to me all the individuals that misinterpret what I'm saying.

1. 3rd party marketplaces are required by law to PROVIDE a 1099, NOT the information to complete it, including your SSN. It's your responsibility to provide this to the IRS.

2. I've been in business for years and have followed ALL IRS reporting laws and rules.

3. Almost all venues I sell in, have you sign statements/documents, confirming you received a 1099. Once again, it's your responsibility to provide the filing to the IRS.

4. You're totally confused if you think I threatened to shut down or hold out to avoid paying taxes. I refuse to give Ebay or any other 3rd party marketplace personal information, like SSN. It's unnecessary. I simply won't sell. I'm not trying to prove anything.

5. Look at Zelle's policy. This is the proper way to do it.

itsjustasprain · ‎12-30-2022

@glutis wrote:
It's amazing to me all the individuals that misinterpret what I'm saying.
1. 3rd party marketplaces are required by law to PROVIDE a 1099, NOT the information to complete it, including your SSN. It's your responsibility to provide this to the IRS.

The 1099k is your copy of what the marketplace has ALREADY reported to the IRS. That is explained to you right on the form itself:

'This is important tax information and is being furnished to the IRS. If you are required to file a return, a negligence penalty or other sanction may be imposed on you if taxable income results from this transaction and the IRS determines that it has not been reported. '

https://www.irs.gov/pub/irs-pdf/f1099k.pdf

pburn · ‎12-30-2022

No one's misinterpreting your posts. We're all just saying that you're demonstrably wrong.

ebooksdiva · ‎12-30-2022

@ebooksdiva wrote:
Back in the 15th or 16th century, not sure exactly, but tax evaders back then were beheaded.

This was meant to be funny...Those who don't think it is ..oh well.

glutis · ‎12-30-2022

Who's responsibility is it to file taxes with the IRS? Ebay or the seller?

Who fills out the 1099 and insures the information is correct? Ebay or the seller?

If inconsistency or error with the 1099, who gets audited? Ebay or the seller?

I've filed properly and paid all my taxes, per law and requirements for years, so please spare me the tax evasion label.

Have a nice day

indianasc · ‎12-30-2022

Hi pburn - You are absolutely correct in everything you said. EBay is required by law to obtain a TIN (SSN or EIN) for every 1099K they submit. From experience, I know that payers cannot wait for a payee to hit the amount required for submitting the 1099K. Too many people will just ignore the request, then it is too late to comply with the requirement. Where I worked, we would not even issue an order from a company , regardless of how small, that could be subject to 1099 withholding at the end of the year. This was for our own protection.

IRS Publication 1281 will answer all questions regarding EBay's legal responsibility for obtaining TINs. The payee (seller) could be subject to required tax withholding through EBay. In addition, EBay may be have to pay penalties.

This a quote from IRS Publication 1281 on page 10. "Generally, you must obtain a TIN from a payee even for a “one-time” transaction. If you do not, the law allows us to charge a penalty." Note that there is not a dollar threshold for this.

Here is the link to IRS publication 1281 that explains in detail the requirements for payees (EBay). https://www.irs.gov/pub/irs-pdf/p1281.pdf

EBay is just doing what is required to do.

itsjustasprain · ‎12-30-2022

@glutis wrote:
Who's responsibility is it to file taxes with the IRS? Ebay or the seller?

Its hard to say what you mean by "file taxes" here. Ebay is responsible for filing the 1099 info. The seller is responsible for filing a tax return that accounts for the income reported by Ebay and reports deductions against that income.

@glutis wrote:
Who fills out the 1099 and insures the information is correct? Ebay or the seller?

Again it is Ebay who fills out the 1099 and ensures that the information is correct. The seller is then responsible for including the reported income in his return along with whatever deductions he wants to claim against it.

@glutis wrote:
If inconsistency or error with the 1099, who gets audited? Ebay or the seller?

That would depend on where the inconsistency or error is traced to. If you look at the 1099 sample in the link above you will see a 'CORRECTED' checkbox that Ebay can use if they need to correct errors. (I think they did in fact have to issue some corrected 1099s last year.)

glutis · ‎12-30-2022

Yeah sure, okay. Bye, now.

doc-holmes · ‎12-30-2022

@this*old*attic wrote:
Pitiful is when you stop selling because you refuse to finally be held accountable for filing taxes - after cheating/flying under the radar for however many years.

I'm curious host much of this is because of not wanting to pay taxes, or because some people are afraid of not being able to figure out the paperwork. Not an excuse, just a possible explanation.

glutis · ‎12-30-2022

Oops, one more thing,

Is Ebay a 3rd party marketplace or financial institution? Think about it. Do you get it now?

theteamsetguy · ‎12-30-2022

The reason the IRS requires the social security number on the 1099 is so they can match up to your tax returns to make sure you accounted for the income on your return. Whether it is a 1099k from payment processors, 1099R for Retirement account distributions, 1099INT for interest income, 1099G for gambling winnings, 1099DIV for dividend income, 1099B proceeds from sales of investments, 1099NEC for non employee compensation, and etc They all are required to have a social security number of the recipient.

What good is a piece of paper if it doesn’t have the information needed by the IRS to verify compliance? The reason why the amount was lowered from 20k to $600 is because too many people were in compliance. If everyone complied there would be no need for the 1099s.