mam98031 • Volunteer Community Member • Buyer/Seller since 1999
@lacemaker3 wrote:@mam98031, thanks for the information about only the last 4 digits of the SSN being required for some sellers. That is good to know, and should be easier for most sellers to accept. I'm sure that eBay will enforce the requirement for the full Tax ID number when it appears that the account may be close to or over the thresholds for sending a 1099K.
I understand your point about the CIP and anti-money-laundering regulations, but the information in those links is hard to understand, and with the first one in particular, it is hard to see how it relates to eBay sellers in particular. I understand and agree that this is possibly another factor or another reason for eBay requiring that sellers provide a Tax ID number. But personally, I think that the requirement for sending 1099K forms is sufficient to explain why eBay is asking for Tax IDs in the first place, and also that this explanation is much easier for most people to understand and (possibly) accept.
Yes you are correct. If it becomes evident to Ebay that a 1099K is in your future they will require you to update your account with the full SSN. But since most of the sellers that complain on the threads about MP are Casual Sellers [no store], this should be a great relief to them. Ebay hasn't required the full SSN from then in months now.
As to those rules I gave you. Those are specific to sellers on Ebay or on the internet. It is for Money Transmitters / processors, or whatever you want to call them.
One thing that always gets me is when some post all concerned about getting these 1099Ks. Especially when the threshold gets lowered in 2022 to $600 unless the Congress changes that before then. What I continue to share with sellers is that if you have been reporting your income on your Federal Income taxes as you always should have been, the addition of getting this form should have no effect on you. Just something to help your bookkeeping and something to balance to. So maybe a little more work because of that but as long as you have always claimed your income it shouldn't be an issue.
@mlou24 wrote:At least PayPal is a primarily financial application and has not had a major data breach unlike ebay. I have had enough trouble with small systems issues with ebay without exposing my financial information. There is so much fraud on ebay these days that I feel like I am providing crucial information out there for the taking. Based on prior experience with them, they have absolutely no loyalty to the sellers.
Well yes, Ebay was hacked in 2014. This is true, but ZERO financial information was breached. The hackers could not break Ebay's encryption coding and therefore could not get to it. So while yes Ebay was hacked, Ebay's security STOOD UP to the hack and protected ALL members. I personally find that as a positive not a negative.
All online sites are always at risk for getting hacked, not just Ebay but every single site.
@futurehouse wrote:For those ebay apologists out there, if ebay would not inject itself into the middle of the financial transaction, there would be no need to turn over your SS #- They need to keep their greedy hands off of everyone’s money and this issue would go away.
Ebay is not requiring your full SSN, just the last 4 digits. I know adjusting to the thought of MP is very difficult for some Casual sellers [no store] for a variety of reasons, all of which are important. It seems to be more difficult for those that have only sold on Ebay as they are unaware how all the other similar sites to Ebay handle payments, which are extremely similar to what Ebay is doing. Ebay is the last of the bigger sites to bring their own money processing system site wide.
FYI, I'm not apologizing for anything for anyone. Just stating some facts. Take them or leave them.
@edwardkoch1978 wrote:
@mam98031 wrote:Ebay is not requiring your full SSN, just the last 4 digits.
ebay requires full SSN, not just the last 4 digits.
That depends. If MP determines that you are likely to hit the threshold for a 1099K, then they are going to need the full SSN. For those they don't think at this time will hit the threshold for a 1099K, they only ask for the last 4 digits of the SSN. If you have multiple selling accounts, they do add them together.
https://help.mybrightwheel.com/en/articles/4633018-form-1099-k-faq
@little*blackdog wrote:Wow you guys... I think the OP just wanted to say he's P.O. 'd at having to give up eBay selling (on his terms) because of the social security number requirement. I get that. It's hard when in most all cases, you try to protect that information and here's messed up eBay, of all entities, wanting that sacred info!
And then there's the issue of trying to earn a few tax-free bucks, especially if retired and on a limited income. Used to be eBay was a profitable way to spend your time. Now it's a big hassle for a lot of small sellers being painted into the corners by "big-boy rules and regulations". I know, I know.
rc66gto, you are correct. Have your garage sales, rent a booth at the flea market, babysit, pet-sit, mow your neighbor's grass and do whatever else you can do to earn that tax-free cash! It's all most retirees can do unless you have the money to buy a cozy neighborhood bar and cultivate your crop of cash customers!
Yes for some sellers it is about protecting personal information. And for others it is about not wanting IRS to know about money they earn online. Money Processors legally have to report money that moves through them once they reach a certain threshold to the IRS. They have no choice in this matter.
Those trying to evade paying taxes or claiming their income to the IRS is the SOLE reason why they created the 1099K form in the first place. We should ALL pay our share of taxes owed. Certainly take all the deductions that are available to you, but if you earn income it should be claimed with or without benefit of a 1099K.
Wait until next year, the threshold on when a 1099K has to be sent out drops to $600 and any number of transactions.
There are some rules that will protect certain sellers that ONLY sell their own used stuff from around there homes from having to pay taxes on those sales. Even if you get issues a 1099K.
IRS refers to this type of income as Hobby Income.
https://www.irs.gov/newsroom/five-things-to-remember-about-hobby-income-and-expenses
https://www.antiquetrader.com/collecting-101/behind-gavel-hobby-become-business
