Substitute Form W-9

[terryannpiano]

I received Substitute Form W-9 requesting my tax ID, entity and certification. Also listing penalties for failure to furnish and such.  I agreed to provide only the last 4 digits of my SS# to eBay, and having been hacked before, I will not provide my info to them online or on some unofficial form.  I did call the number on the form and spoke to a human who said she was from eBay tax dept.  She said that my funds from 2022 have been put on hold and will not be released until I provide my info.  Since I did not sell $600 on eBay, I questioned this.  She said she thought I might sell more, but as this is 2023, I don't know how that would happen.  She said any new listing payments would also be placed on hold, until I provide the info they want.  I asked about the penalties, and she said that eBay would not be issuing any penalties if the form was not returned.  Professionals advise not to give out your social security number and I agree.   We've already paid the sales tax on used items.   This is not my 'job' and it's not my income.  Many of the items were sold for family or friends.  These policies are just bad, and I've read that the Substitute form W-9 is for charities, not me, not eBay.

[maxine*j]

You must provide your Social Security Number it any time you are doing anything reportable to the IRS or your state's tax department.

You must also provide it anytime you engage in any transaction subject to the Customer Identification Program provision of the US Patriot Act which includes, but is not limited to, giving it to:

-- Companies from which you are applying for credit: credit cards, loans of any type, cell phone service

-- Your department of motor vehicles

-- Employers
-- The three main credit reporting agencies: Equifax, Experian, and TransUnion
-- Investment advisors and brokerage houses
-- Banks
-- Companies with which you have a cash transaction of $10,000 or more: car dealerships, RV and boat dealerships, etc.
-- Companies facilitating real estate transactions

-- Federal and state agencies when applying for benefits: Social Security, Medicare, Disability, Medicaid, and other aid programs`

For decades, most schools used SSNs as student ID numbers, so if you are over about 40 years of age and attended any school in the US, it probably has your SSN.  SSNs were also commonly used as identifiers for medical records, and I'll wager it's in your medical records if you are over 40 years oa age.  And on and so on.

So getting all knotted up because eBay's payment processing requires you to have a bank account and an SSN seems a waste of time and energy that would be better spent in vigilance and in securing your own e-systems.

-

[terryannpiano]

Update:  Last month, Ebay returned the total amount they were holding to my account.  Currently, they still have the last 4 digits of my SS#.   I've removed any old listings that didn't sell. I don't miss selling on eBay or their policy.  I feel good that I found other interests more to my liking and make more donations to the Vets.      I wish you all the best of luck with your sales and eBay. 

[mam98031]

---

@terryannpiano wrote:

Update:  Last month, Ebay returned the total amount they were holding to my account.  Currently, they still have the last 4 digits of my SS#.   I've removed any old listings that didn't sell. I don't miss selling on eBay or their policy.  I feel good that I found other interests more to my liking and make more donations to the Vets.      I wish you all the best of luck with your sales and eBay. 

---

Well be advised then that when Ebay releases the money to your checking account they will likely be withhold a percentage to cover taxes.  They are required to do that.

Ebay is just following the laws that are in place.  Ebay didn't write them.

[terryannpiano]

eBay released the total amount.  I don't hold anything against them for changing their policies. 

I've moved on and feel better without them.

Thanks for all your replies.

[mam98031]

Ebay had no choice.  Once they became our Money processor, there were laws they have to comply with and IRS requirements.  They have no choice.  IRS is the one's that request Ebay to get W9 info from certain sellers.

I'm glad you feel better now and I hope everything goes smoothly for you.

[ms.rodriguez*]

It does not matter where you sell in the USA, if you take online payments, you will have to submit the social security number and you will get a 1099 form for each site that you sell $600.oo or more.

[mam98031]

---

@ms.rodriguez* wrote:

It does not matter where you sell in the USA, if you take online payments, you will have to submit the social security number and you will get a 1099 form for each site that you sell $600.oo or more.

---

Correct, if that site is your money processor too.

But if you sell on a site that has a separate money processor, it is the money processor that will issue the 1099K.

[terryannpiano]

Thanks for all your input.  I'm sure it will be very helpful for those selling on eBay.

Since my last year of selling was under $600, the substitute form W-9 was not necessary.  After a few months, Ebay returned all of the money they were holding from my account.  I did not give my SS# to anyone at eBay or list it on an unofficial form or to PayPal when I reopened that account. 

I no longer list items for sale on eBay but love that it's a great place to shop and do research. 

There are many other venues for my unique and one-of-a-kind items.  Personally, I find it much less stressful and enjoy meeting many of my customers in person.

Wishing you good luck this year!

terryannpiano

[kh-phdan]

Hello Everyone,

Due to the age of the thread, it has been closed to further replies. Please feel free to start a new thread if you wish to continue discussing this topic.

Thanks for understanding!