Missouri 1099K for BOTH 2020 and 2021 received this week

[tree-7]

I know this has been mentioned buried in other threads, but felt it deserved its own headline discussion.

I know Missouri has a $1200 threshold for 2021. However, when they sent out the 2021 for over $1200 this week, they also sent a 2020 as well for over $1200. Nothing was received last year for 2020.

The issue, is my 2020 1099k is about $450 more than what I had on my return. I sold my old iphone  that sold at the end of 2019 which I claimed for that year. I did not understand the payment settlement date/sale date difference.  If I had gotten this last year, I could have corrected it.  Yes, I can prove this, but I rather not have to a year or two down the line. Now I am wondering if I need to amend 2020 return....I know, I know ask my tax rep. But first I want to know if this is just a snafu like the CA situation.

After I saw this, I checked my tax transcript on the IRS website and they didn't have the 2020 there..

Here is the question, was the 2020 Missouri 1099ks sent by mistake for eBay? Were the Missouri 2020 1099s issued by mistake like the CA snafu that for 2021?  Will these Missouri 2020s be filed to both IRS/State (a year late).  Its pretty crappy that these came out a year after that fact.  If the threshold changed in 2021, then Missouri sellers deserve the same consideration as CA sellers just received.

I feel it is fair to have an official response on this.  I'm sure other Missouri sellers have seen this and have contacted eBay, what has anyone heard about Missouri when they contacted eBay.

Thanks.

[dbfolks166mt]

     There are pretty heavy fines for not getting the 1099's to the recipient on time. EBay is required to have them completed by 1/31/xxxx. When you receive them depends on the postal service but at this point you should have gotten them even if you are in a rural area. There is a hotline you can call. 

[nomads1956]

There are thresholds that must be met before corporations are "required" to generate 1099's.   There is nothing that prohibits corporations from generating 1099's below the given thresholds.   In the case of 2020 and 2021 Missouri thresholds, Missouri law is very clear.   Ebay was not obligated to send and 1099's unless Federal thresholds were met.   Since there was no legal obligation to generate these 1099's, it is highly unlikely that Missouri or the IRS would impose any fines for late generation.    

[espresso_warehouse]

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@tree-7 wrote:

when they sent out the 2021 for over $1200 this week, they also sent a 2020 as well for over $1200. Nothing was received last year for 2020.

Is there any explanation why they sent out 2020 1099 so late?

If you reported an amount, and their 1099 has a different amount you are going to have to refile. It's irresponsible, and adds merit to some of the fear mongering about this.

[espresso_warehouse]

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@nomads1956 wrote:

I spoke with an eBay rep that had a connection to those in the know.   I was told that eBay's communication with Missouri left eBay uncertain about how to proceed so they erred on the side of caution and sent them out.  The law seems very clear to me.   Only send them out if the Federal threshold and the Missouri 1200 have been met.  I believe that eBay should revisit their decision as they did in California.

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Going forward, they should just send them out to everyone. I don't see the point of continuing to mess with everyone.

That being said, sending them out a year late is unacceptable.

[nomads1956]

Going forward, most everyone selling on eBay will exceed the $600.00 federal threshold for reporting.

[nomads1956]

The eBay reps have no clue as to why 2020 1099's were sent out.  (Multiple calls to supervisors)   Deciding how to navigate an error made on your 2020 filing that does not match your belated 2020 1099k, would require consultation with a tax advisor.   They may advise amending your 2020 tax forms immediately or maybe suggest waiting for a demand letter and dealing with it then.   Some have suggested that since the 2020's have not been mailed out as were the 2021's, there may be a chance that they will not be forwarded to the respective agencies.   I would hesitate to rely on that suggestion.

[espresso_warehouse]

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@nomads1956 wrote:

The eBay reps have no clue as to why 2020 1099's were sent out.  (Multiple calls to supervisors)   Deciding how to navigate an error made on your 2020 filing that does not match your belated 2020 1099k, would require consultation with a tax advisor.   They may advise amending your 2020 tax forms immediately or maybe suggest waiting for a demand letter and dealing with it then.   Some have suggested that since the 2020's have not been mailed out as were the 2021's, there may be a chance that they will not be forwarded to the respective agencies.   I would hesitate to rely on that suggestion.

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I'm genuinely shocked by this. But if you were to ask me which NASDAQ company is most likely to send out a bunch of random 1099s to its customers a year after the deadline, eBay would top my list.

And so I shouldn't be shocked. My bad for not seeing this coming. I've already seen them do even more irresponsible things over the years anyway. Disappointed.

[nomads1956]

This most legitimate response that I received from a rep about the generation of the 2021 1099's was, "After inquiring with Missouri authorities about interpreting the Missouri law, Missouri would not give a definitive answer.  Ebay then made a judgement call to err on the side of caution and generated the 1099's."   Now we all know what the bottom of the bus looks like.   The Missouri language is not difficult to understand but the penalties for under reporting have increased recently and are fairly substantial.   My guess is that ebay contacted the Missouri Dept. of Rev. for an answer rather than the Missouri Attorney General.   The DOR will always side on more reporting.

[nomads1956]

Again, here is the Missouri language.  

Missouri Law concerning 1099k's:

"All individuals, businesses and corporations who are required to file a federal 1099 information
report must file with the Missouri Department of Revenue an annual statement of payments of
any income of $1,200 or more from a Missouri source except:
• Wages from which taxes were withheld; and,
• Income reported on an information report for an S corporation or partnership.

[tsme35]

"who are required to file a federal 1099 information" this is the phrase that is causing the problem, technically the federal requirements is $20K. But to send a 2020 1099 a year later is just wrong, paypal didn't send one.

[tsme35]

Has anyone heard anything about the 2020-1099k for Missouri yet, they stop replying to my emails a week ago. Last time I got thru and spent 30 mins waiting for a supervisor is their working on it. OK its been 6 weeks since it showed up and no word

[dbfolks166mt]

    At this point it is pretty much a waste of time to call eBay. They are simply going to stack you in the queue with everyone else. Call the IRS you will get a better response out of eBay. At this point I am pretty sure eBay is getting hit with some pretty heavy penalty charges from the IRS for being late on the accurate and timely dissemination of the 1099's. 

[tsme35]

Sad state of affairs when ebay can't answer a simple question, good luck with the IRS number, you have a better chance talking to a US rep then wait hours for the IRS

[dbfolks166mt]

    It's not that eBay can't answer the question it's that they cannot fix the problem.  I have always had pretty good luck with the IRS hotline. I had to call them in early February when I did not receive another 1099 from a financial processor. Was on hold for about 15 minutes.