mam98031 • Volunteer Community Member • Buyer/Seller since 1999
@dognessy wrote:
@nobody*s_perfect wrote:As a payment processor, eBay must provide you (and the IRS) with a Form 1099-K if you pass the required thresholds. The federal thresholds are 200 transactions and $20,000, but several states have set limits as low as $600.
https://www.ebay.com/help/selling/fees-credits-invoices/ebay-form-1099k?id=4794
These are they keywords! IF YOU PASS....
Well, I'm certainly sell way below the limit, and I sell for charity, so why why why I need to provide my SSN???? This is ridiculous and dangerous!
I'm moving, after 20+ years, out from eBay completely (buy and cell) , to Amazon, eBid and Bonanza.
There is nothing in that link that says the SSN doesn't need to be collected for identification purposes until AFTER they pass the minimum threshold for a 1099K for IRS. And what about the fact that 8 states passed laws that 1099Ks have to be issued for sales in many of them as low as $600. More states are likely to adopt it.
If Money processors were to wait until AFTER sellers went past the minimum threshold no matter how much that threshold is, what is the processor suppose to do if the seller still refuses to supply their SSN. What leverage do they have? Not much but the Money processor may pay a penalty fee to IRS for not having the SSN.
MP as NEVER said they 1099K everyone. Nor do they. When a 1099K is required by federal or state law, they are issued from MP.
@espresso_warehouse wrote:Of course they won't be sending those out. Who claimed otherwise? I said 'I doubt they will'.
Since they aren't required to, it would have to be eBay policy. Much like their choice to collect SSN at $0.
I'm of the opinion that they should all be reporting every dollar, and it's probably only a matter of time before regulators get on them about it. So maybe eBay is ahead of the curve on this one.
You stated "As I have said before, my main issue with ebay collecting SSN for people who don't meet the threshold is that I doubt they will actually 1099 everyone. When it comes time, they will only 1099 the people who hit the threshold. That is the primary thing I am waiting on. If I have an account like this one where I only sell household items and they ask for my SSN but then don't provide a 1099...idk. I will be happy to be wrong about this one. Maybe someone in my situation who has gone into MP last year can advise?"
I simply answered the question. No they don't issue a 1099K on everyone. Only those that meet the $$ thresholds set for by IRS or the state the seller is in. MP makes no determination on whether or not the seller has to claim that money on their tax returns. That isn't a function of MP nor is it anything any agency federal or state requires them to determine. MP's responsibility is simple. If a seller meets a certain threshold whether state or federal, a 1099K is issued.
@slippinjimmy wrote:Hard to believe this discussion is still going on!
For reference for those who seem hung up on the "show me the law" thing...........
The requirements for issuing 1099-K forms for payment processors can be found here:
Housing and Economic Recovery Act of 2008 - Section 3091 (page 256)
https://www.congress.gov/110/plaws/publ289/PLAW-110publ289.pdf
You will note that the wording of that law empowers the IRS to set the rules and regulations, you can find those here:
https://www.irs.gov/businesses/new-1099-k-reporting-requirements-for-payment-settlement-entities
@espresso_warehouse has difficulty accepting the fact that there are laws and regulations in place for MP collecting and retaining SSNs or TINs. In post 60 I gave a lot of information on this as stated in the AML law and the the US Patriot act. They then shifted to wanting more information regarding IRS requirements as if the AMLL and the USPA wasn't enough of a requirement.
Thank you for the information. It is interesting and helpful.
@espresso_warehouse wrote:There is clearly no 'Federal law' that requires eBay to collect SSN or Tin at $0, $10, nor $1000.
Which is why Mercari and other payment processors don't collect until a certain threshold/frequency.
I prefer to be factual.
You can't be helped because you refuse to see. So your repeated posts to me are not necessary. I can't help you. This info was previously provided to you. So we are done on this subject. Beating it to death isn't going to change the answers previously given you as they were factual and supported with links whether or not you want to acknowledge that.
With that said, I'm aware that there have been some people on various places on the website state that Mercari doesn't require an SSN until you have reached the $5000 mark in sales. However Mercari's website does not state that. And if it were some unwritten rule, they likely changed it since State law in about 8 states changed in 2020 and Mercari had to supply 1099Ks to sellers in those states with sales as low as $600.
@espresso_warehouse wrote:I am not asking for your help. Nor do I need it. I asked you to back up your claim about 'federal law', which you could not.
Because there is no 'federal law' at this time which requires eBay to get SSN or TIN at $0.
As you point out, other sites contracted with Ayden do not require it until you meet a threshold. You keep bringing up 'state law' to obfuscate your 'federal law' claim.
I know you keep saying that, but it simply isn't true. Because you keep saying it doesn't make it suddenly true.
Post 60 on this thread is just one place I posted it.
