Question regarding Form 1099-K

[longtimealaskan]

I received a notice from ebay that they are holding my payouts until I give them my social security number.  I have no issue with the 1099.  I'm not a big seller and the vast majority of things I sell are things my wife and I bought over the years for personal reasons, used them, and then eventually stopped using them.  Although I sell some items to make a profit, I mostly sell items that we bought but no longer use.  I'm sure I would be showing a loss on the 1099.  Either way, I don't have a problem reporting my profit or reporting my loss to the IRS.  I've already set up an Excel spreadsheet listing the items I sold, the sell dates, the selling price of the item and any expenses like ebay fees, shipping cost, insurance, shipping labels, packaging materials, etc.

My issue is giving my social security number to ebay.   I cringe at giving ebay or any other online business my personal/financial information.  I wouldn't trust the ebay clowns to protect my information.  Bigger and better firms than ebay have been hacked and personal information for the firm's clients stolen.   My personal information has been hacked from large firms 4 times already, firms in theory more concerned about protecting personal information than ebay is likely to be.  I'd rather ebay withheld the 24% and sent it directly to the IRS.  I will have to file a 1099 anyhow so why not eliminate the weakest link with respect to protecting my social security number?  I don't mind waiting to get my money back from the IRS.  I'm more concerned about protecting my personal information.  If ebay doesn't have my social security number they can't lose it or have it stolen from them.  Do you feel comfortable trusting ebay to properly protect your personal information?

What's wrong with my plan?  Any and all constructive comments and thoughts are welcome.  

[krazzykats]

S.936 - INFORM Consumers Act117th Congress (2021-2022)

To require online marketplaces to collect, verify, and disclose certain information regarding high-volume third-party sellers of consumer products to inform consumers.

Text - S.936 - 117th Congress (2021-2022): INFORM Consumers Act | Congress.gov | Library of Congress

[espresso_warehouse]

"Online marketplaces must make certain information (e.g., sellers' names and contact information) available to consumers through the sellers' product listings and provide consumers with methods to report electronically and by telephone any suspicious activity on the marketplace."

Another angle I had not considered. Fidelity of trade. Thanks!

[longtimealaskan]

Thanks for the suggestion about an EIN.  I will look into that.

[krazzykats]

Retail theft has never been higher, and it's way too easy to resell the stolen items online. 1099s and SS#'s legitimize the seller and items.

Retailers push for new rules stopping the online sale of stolen goods.

Retailers push new rules targeting stolen goods sold online - Axios

[espresso_warehouse]

Yes I have been reading that. It's a political issue at this point, like many things. They intend to punish everyone, you, me and the platform - yet not punish the actual thieves at all except by taking away the marketplace altogether. Or at best severely limiting it.

The end goal is to validate every item and thereby throttle noisy online marketplaces down. So people can't resale good from unknown origin. It's just getting started.

I would prefer they just go after the thieves. But all we can do is vote.

[longtimealaskan]

So JD, exactly what math issues are you referring to?  Maybe I can explain them to you.

[bearswatching · Accepted solution]

If you are this paranoid about identity theft, and having already been hacked 4 times, why on earth are you not freezing your credit? It’s free to freeze and unfreeze at will. In the twenty five—ish or so years since we froze ours there have been 2 attempts to use our SSN. Both were instantly shot down. You can Google the pros and cons but we have never felt there is a downside to freezing. When you anticipate a big expenditure coming up where a credit check will be necessary just unfreeze it and then freeze again after the credit check is finished.

[longtimealaskan]

Thank you.  Good response.  I froze our accounts back in 2013 after one of the hacks was reported.  I had to unfreeze them for a day for a purchase and then refroze them again.  When a large company like Blue Cross gets hacked and medical records and personal data are taken I find it very difficult to think ebay is going to go to any great length to protect people's personal data.   But even if I have frozen my accounts, regularly check our credit information, and other things to protect our information, I still feel like giving ebay my personal information is counterproductive to my efforts to protect my data.  I know some of my personal information (name, telephone number, email address) is on the black market but so far I haven't found my social security number, date of birth, or any credit information.  There's an old saying attributed to Henry Kissinger and others, "Just because I'm paranoid doesn't mean they're not out to get me."

[bearswatching]

I’ve heard that saying. That’s a hoot! And true.

[wrong66]

In the 26+ years eBay has been in business, they have NEVER been hacked for any member's personal financial information.

[longtimealaskan]

Well JD, I guess you decided your comment about my math skills was probably incorrect, and rightfully so.  It would not be possible to conclude a person's math skill are questionable based solely  on the year and  number of years I mentioned in my post.  So while you would get zero credit for your initial faulty analysis you do get credit for apparently realizing your error and deciding no response was the best way to deal with your error.  Try to think things through before you make snide comments.  Good luck with your life.  

[southern*sweet*tea]

If you are worried about protecting your personal information online, forget it. It's already out there, ready for sale on the dark web. All anyone needs is a few dollars and everything about you can be bought.  If you've ever filled out a form on the internet, your info is out there. If you've ever signed up for your doctor's website, or your bank's website, or paid your power bill online, that information is out there.  They say it's not, but it is.

The horse left the barn over two decades ago as far as internet security goes.  You should always assume that any information you give, no matter where you give it, even on the most 'Secure' websites, is available to anyone who wants it.

I'm not saying to be stupid and blast your information all over for the world to see, because most people aren't hackers on the dark web.  But your info is out there.  You have to constantly keep check on your information to make sure it's not being used by someone who's not you.

The ONLY way to reverse this would be to change your SSN, get a new driver's license with a new number, get new bank accounts (or use cash exclusively) and never use the internet.

[longtimealaskan]

Dear Wrong66 - I NEVER said ebay got hacked.  Please post my response where I said ebay got hacked.  I said in my response to the other poster "I would put more trust in any of the businesses/government agencies you mentioned than I would in ebay.  I simply have no faith in ebay protecting my personal information."  I would hope I am entitled to express my concerns.

[longtimealaskan]

Yes, I already know my information is on the dark web and has been there for many years now.  As I posted to someone else, I have found my information on the dark web but so far it has been limited to my name, telephone number and email address.  I never found my date of birth or my SS#.  I have my credit accounts frozen and I check my credit reports regularly.  That doesn't mean I feel comfortable giving out information like my SS#.  The more times my SS# is provided to other sources, the higher the likelihood my SS# will show up on the dark web.  

[southern*sweet*tea]

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@longtimealaskan wrote:

Yes, I already know my information is on the dark web and has been there for many years now.  As I posted to someone else, I have found my information on the dark web but so far it has been limited to my name, telephone number and email address.  I never found my date of birth or my SS#.  I have my credit accounts frozen and I check my credit reports regularly.  That doesn't mean I feel comfortable giving out information like my SS#.  The more times my SS# is provided to other sources, the higher the likelihood my SS# will show up on the dark web.  

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It's there, I promise you. You just didn't find it.  Practically every government and financial institution has been hacked to some degree - they just don't tell you about it. The credit bureaus themselves have been hacked. Equifax was hacked a few years ago and almost 150 million people's names, addresses, SSN and all that good juicy stuff was stolen. 

 Way back in 2015, 80% of US companies reported that they had successfully been hacked.     https://www.cbsnews.com/news/percentage-of-companies-that-report-systems-hacked/     Do you hear about it?  Maybe years later you do.

Your info is out there, no matter how careful you are.