Sellers only please irs problem

[frso_7864]

So I’m getting a letter from the irs it says on the outside official business 300$ penalty for private use  im guessing thats not relavent. But at best I’ve made maybe 120 a month on sales not counting what I pay to eBay or shipping making it more like 60 a month . So why would I have to pay the irs I’ve done my taxes every time I have to and this is unusual timing . Since last year the law wasn’t the same . Does eBay report our income like excluding what they charge us ? That is the question . Because that makes no sense we spend on postage eBay over charges on listings they should atleast well I’ll just stop there if anyone has any insight dealing with the irs let me now 

[1786davycrockett]

So what does the letter say?  Can you provide a copy?

[mtgraves7984]

So I’m getting a letter from the irs it says on the outside official business 300$ penalty for private use...

@frso_7864 

So did you open it? I think it's okay to, since it was addressed to you...

[2013grotz]

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@frso_7864 wrote:

Does eBay report our income like excluding what they charge us ? That is the question .

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The law over the 1099-K form says that Ebay (really Adyen) has to report any payments that people receive over $600.  So basically, the 1099-K will have whatever your gross sales were for the year.  If there's a concern with that, you will have to hire a CPA and help you through a Schedule C (I think) where you report all your costs and they can deduct it from there.  Of course, the whole stereotype is true, you will have to have receipts for every little thing you claim.  And yes, there's been a real threat of an audit on these forms issued by the IRS.

As for anything beyond that, you don't give us any details to be able to say anything.

[firesteel_surplus]

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@frso_7864 wrote:

So I’m getting a letter from the irs it says on the outside official business 300$ penalty for private use  im guessing thats not relavent. But at best I’ve made maybe 120 a month on sales not counting what I pay to eBay or shipping making it more like 60 a month . So why would I have to pay the irs I’ve done my taxes every time I have to and this is unusual timing . Since last year the law wasn’t the same . Does eBay report our income like excluding what they charge us ? That is the question . Because that makes no sense we spend on postage eBay over charges on listings they should atleast well I’ll just stop there if anyone has any insight dealing with the irs let me now 

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I guess I'd really like to know what the letter says. Could you open it? Maybe message us the important stuff in it?

I've never dealt with the IRS. I never want too. It gives me bad dreams thinking about it. I'm going to have bad dreams of IRS agents chasing me over fences tonite while I count them.

Mike

Firesteel Surplus

[nobody*s_perfect]

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@frso_7864 wrote:

So I’m getting a letter from the irs it says on the outside official business 300$ penalty for private use  im guessing thats not relavent. ...

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If you haven't even read the letter, why are you asking so many questions that might not even be relevant.  Look  at the letter.  If you HAVE read the letter, please share the relevant sections.

[stainlessenginecovers]

1.) If you are in Cali or a few other states- the threshold for LAST YEAR (2021) was $600 (the NEW number for all states in 2022 with 1099 given in 2023); so it could be from that.

2.) The amount shown is the Gross a customer paid (minus taxes ONLY); the 'Fees' you paid as well as 'Shipping Costs' are NOT deducted and that is something you have to deduct when doing taxes

Example- sell $120 a month for 12 months would equal $1400 GROSS. That is the amount that would be, could've been- reported. You then deduct the Fees and Shipping Costs. 

[spark-chaser1]

All us govt correspondence carries the 300 buck warning. Its to prevent people from using the " franking" privelege of postage. Ie; people grabbing envelopes with " free" postage and sending a birthday card on Uncle Sam's nickel.

[maxine*j]

Maybe it actually from the IRS.  Maybe it is not.  Lots of fake IRS,  Social Security, Medicare, et al, mail out there (along with the phising email and the bogus phone calls).   That "penalty for private use" bit makes me think it's probably junk mail.

In any event, since you choose to not share with us what the letter says, how can we possibly help?   For all we know, the letter is genuine and you're being notified of a refund.

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[spark-chaser1]

... So yeah, If it was addressed to you, OP... it would be in your best interest to open it... I'm sure its not a birthday card.

[toybrats]

Look at the letter.  See if you can take a photo and post it here BUT before you do that, cover your name , address and social security number.  Use  a small piece of paper or a few coins to cover that important information.  It's very possible that the letter is from a scammer.

[nobody*s_perfect]

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@stainlessenginecovers wrote:

1.) If you are in Cali or a few other states- the threshold for LAST YEAR (2021) was $600 .... 

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OP's listings indicate that he is in Texas, which is not one of the states that had already lowered the threshold for 1099-K reporting. But perhaps they were in a different state last year?

[buyselljack2016]

As has been posted the 1099-K is sent based upon monthly gross sales.

For the past 90 days, yours far exceed $120 monthly.

[ckimodog]

@frso_7864 

Although there are many helpfuls here on the forum,   my suggestion is contact someone who is a professional tax consultant/preparer and does it for a living.  That's you best outlet. 

[firesteel_surplus]

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@ckimodog wrote:

@frso_7864 

Although there are many helpfuls here on the forum,   my suggestion is contact someone who is a professional tax consultant/preparer and does it for a living.  That's you best outlet. 

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I'd still would like to kind of see what's in the letter. We're all curious now!

Is it from the IRS?
Is it an audit?
It is a sweepstakes?

Is it a donation request?

Is it a scam/IRS scare tactic to send money via a MoneyGram

See the possibilities?
Mike

Firsteel Surplus