Seems like both eBay AND Paypal will have to issue 1099K's, right?

[tomatbay]

PP is clearly a 3rd party transaction outfit so they have to issue a 1099K

eBay says they are going to send sellers 1099K's in 2022

So is PP going to send it's 1099K to eBay?  I sure hope so...

[southern*sweet*tea]

Why would Paypal send a 1099 to Ebay?

[tomatbay]

Paypal by definition is a "3rd Party Transaction" provider and they must issue 1099K's.   Maybe the law is written that the last 3rd Party in the Payment Chain has to issue the 1099K to the actual Buyer.

Credit Cards could also be in the PP chain if Buyer funds PP with one:

Buyer  >  CC  >  PP  >  Ebay  >  Seller

Maybe the law is written that the last 3rd Party in the Payment Chain has to issue the 1099K to the actual Buyer.

But if Ebay writes the 1099K, then Ebay is now a 3rd Party Transaction provider.

[slippinjimmy]

eBay IS the money transmitter, they issue the 1099k

Buyers do not get a 1099k from anyone, they are only for those that receive payments.

PayPal probably does send a 1099k to eBay, I'm sure they file it in the relevant pile of "documents not needed for anything but need to be kept anyway".

[chapeau-noir]

If you transitioned to eBay Managed Payments from Paypal mid-year (say), and generated over $20k revenue from Paypal before the transition, you will get a 1099-K from Paypal, but that's the only way you'd get a 1099-K from Paypal.

Paypal and all credit cards, google pay and the rest of it are included in eBay managed payments, which generates the actual tax document.  Don't worry about those other payment sources.

[johnrj1226]

In 2021 1f one met  the   sales numbers (20K) under eBays Managed Payments and20K in  the PayPal era  one would get two 1099s.  One from PayPal and one from eBay via Ayden (the real money processor) - not a combined one.  PayPal & eBays divorce  is finalized but PayPal still has you SS number, your last recorded address & your checking account number - just renewed my PayPal  Business Debit card w/PP as I still have a balance in it. Had to verify all the info was up to date.

[downunder-61]

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@tomatbay wrote:

PP is clearly a 3rd party transaction outfit so they have to issue a 1099K

eBay says they are going to send sellers 1099K's in 2022

So is PP going to send it's 1099K to eBay?  I sure hope so...

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Why would they do that?

eBay will send a 1099k to you (if required) and to the IRS

Paypal will send a 1099k to you (if required) and to the IRS

[nobody*s_perfect]

There is no "payment chain." If you are in Managed Payments, then eBay/Adyen processed your payments. If you were still using PayPal to accept payments, then PayPal was your payment processor.  

PayPal and eBay send out 1099-K's separately based on the funds they processed. If you switched over to Managed Payments during the year, then there could be 1099-K's from either PayPal or eBay, or both, or neither, depending on whether they processed funds exceeding the threshold that applies in your state. 

[luckythewinner]

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@tomatbay wrote:

PP is clearly a 3rd party transaction outfit so they have to issue a 1099K

eBay says they are going to send sellers 1099K's in 2022

So is PP going to send it's 1099K to eBay?  I sure hope so...

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I'm sure PayPal will submit whatever forms the law requires for whatever taxpayer ID they were given.

I'm sure both PayPal and eBay have accounting departments that handle this. 

[lacemaker3]

Only the payee (the one who is receiving the payment) gets a 1099-K. When multiple PSEs and TPSOs are involved, the last PSE/TPSO involved, the one that transfers the payment to the payee, is responsible for issuing the 1099-K.

https://www.irs.gov/pub/irs-pdf/i1099k.pdf

[dnasilver]

Just to clarify that would be 200 transactions and 20K. You can have ten million in revenue but only 199 transaction and then no 1099 for 2021. Of course, that amount of dollars flowing will certainly be flagged elsewhere.

[nobody*s_perfect]

Yes, the federal threshold is 200 transactions. But several states have much lower thresholds, most of them are $600 and one transaction, just like the new federal thresholds for 2022.

https://www.paypal.com/us/smarthelp/article/i-live-in-vermont-or-massachusetts,-what-are-the-form-10...

[varebelrose]

Just to share, last year we had a PayPal 1099, but they do not "send" it to you. You have to log in, go to the "tax documents" tab, and download it yourself. At least thats how it worked for us in 2021. If I didnt know to expect one, I would likely have missed it completely; I bet many other people (especially in low threshold states like Virginia) never realized that they got one.

[a_c_green]

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@nobody*s_perfect wrote:

PayPal and eBay send out 1099-K's separately based on the funds they processed. If you switched over to Managed Payments during the year, then there could be 1099-K's from either PayPal or eBay, or both, or neither, depending on whether they processed funds exceeding the threshold that applies in your state. 

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...which is exactly what happened to me for Tax Year 2020, when I was assimilated into MP in September.

I got a 1099 from PayPal covering my gross income from January up to the middle of September, with zeroes after that. I got another 1099 from eBay for Adyen (corporate motto: "Stop calling us Ayden") covering mid-September through the end of the year.

[tomatbay]

Messages 10 is the clear answer. 

But Message 13 is critically important:  Knowing that PP DOES NOT SEND OUT 1099K's  👹

I would use Quotes here but how to use the quote system in this forum is beyond my mental capacity.