The Coalition for 1099-K Fairness Mission

[5594shelleys]

The fight is still strong. Thankfully.

Mission

Our mission is to protect casual sellers, entrepreneurs and microbusinesses from unfair tax reporting burdens on online marketplaces.

The Coalition for 1099-K Fairness is a coalition of online marketplaces, casual sellers, entrepreneurs, online seller communities, and consumer advocates committed to maintaining an accessible, fair, and safe resale market for used and pre-owned goods via online platforms, while empowering entrepreneurs and microbusinesses trying to get their business off the ground by selling online.

Millions of Americans have sold an item online, and many of these sellers use those funds for critical needs such as food, medicine, and bills and are not running a business. Tax laws surrounding online sales should account for the millions of Americans using online marketplaces only for occasional transactions. Many others turned to online marketplaces at a time when local physical markets were shut down, COVID restrictions limited non-essential work, or remote learning required extra caregiving responsibilities. As members of The Coalition for 1099-K Fairness, we pledge to safeguard the needs and interests of casual sellers and micro entrepreneurs and advocate for common-sense tax regulations to govern the resale market.

The Coalition for 1099-K Fairness is committed to maintaining an accessible, fair, and safe resale market for used and pre-owned goods via online platforms, while empowering entrepreneurs and microbusinesses trying to get their business off the ground by selling online.

The Coalition for 1099-K Fairness was founded by eBay, Etsy, Mercari, OfferUp, Poshmark, Reverb and Tradesy in response to major changes in online tax reporting thresholds included in the American Rescue Plan Act of 2021.

This change in the tax code, and the resulting confusion it will cause, could not come at a worse time. The new reporting threshold of only $600 means that Americans who sell only used goods and owe no taxes will now get confusing IRS forms, and many will be forced to consult costly tax experts when they normally handle their own returns, or risk over paying on their taxes. Even those who do not owe taxes may lack the documentation they need to file appropriately. Already-strained IRS resources will be spent processing hundreds of millions of new forms - even when no reportable income was generated. In addition, online marketplaces will now be required to collect full social security numbers for sellers, even when they only have a few hundred dollars in online sales.

[fab_finds4u]

I for one am happy the tax dodgers are held accountable now.

Selling is earning income. Earned income is reportable.

End of story.

[bonjourami]

Agreed.

[shot9067]

Same goes for garage sales and cool-aid stands too, right?

[maxine*j]

Support that coalition, if you care to.  But it does not have my best interests at heart, not by any means. 

That coalition of marketplace facilitators wants to dodge the burden of having to do the accounting and issue the 1099 forms. 

That colation also knows that income tax avoidance has been one of the drivers of e-commerce, and so they fight efforts to make it harder to avoid.  Sales tax avoidance was another driver of e-commerce, but at the U.S, Supreme Court level those same marketplace facilitators finally lost their battle against collecting and remitting sales tax due to the states.

That coalition does not care in the least that all those so-called "casual sellers, entrepreneurs and microbusinesses" have for years and years been running businesses on-line without reporting their incomes and paying any taxes due on them and thereby had a  substantial and unfair advantage over those of us who operated straight.

Nope.  I want everyone in these marketplaces playing by the same rules, and the same old rules at that, by reporting income and paying any taxes due on it.

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[5594shelleys]

Millions of Americans have sold an item online, and many of these sellers use those funds for critical needs such as food, medicine, and bills and are not running a business. Tax laws surrounding online sales should account for the millions of Americans using online marketplaces only for occasional transactions. Many others turned to online marketplaces at a time when local physical markets were shut down, COVID restrictions limited non-essential work, or remote learning required extra caregiving responsibilities. As members of The Coalition for 1099-K Fairness, we pledge to safeguard the needs and interests of casual sellers and micro entrepreneurs and advocate for common-sense tax regulations to govern the resale market.

[itsjustasprain]

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@shot9067 wrote:

Same goes for garage sales and cool-aid stands too, right?

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Garage sales yes - Kool Aid stands no. A couple of 10-year-olds sitting behind a folding table near the street are not taxpayers.

People seem to forget that taking the proper deductions will reduce their taxes quite a bit. Its not as if you are really going to pay taxes on that full new lower bar of $600 in income. Once you get done deducting for cost of acquisition and packaging and postage and gas money your resulting tax increase over last year will be chump change. In the case of selling old household possessions the depreciation will ensure that your sale price is not really profit at all.

(I did get a giggle out of their concern for those 'Already strained IRS resources'. Poor fellows. I think they will get by. 🙂)

[buyselljack2016]

You can post the same thing a hundred times.

Doesn't make it so.

[5594shelleys]

US citizens can never be taxed enough. Never. Any help from eBay, Etsy, Mercari, OfferUp, Poshmark, Reverb and Tradesy to keep seller's hard earned profits in their pockets is greatly appreciated by many.

Joe Manchin and Senate Majority Leader Chuck Schumer on Wednesday reached a deal on a bill that includes energy and tax policy, a turnaround after the two deadlocked earlier this month in talks on Democrats’ marquee party-line agenda. In a joint statement, the two Democrats said the legislation will be on the Senate floor next week. It includes roughly $370 BILLION in energy and climate spending.

[maxine*j]

We see people here every day with this complaint.  Then we note that they've been seeling for years, often have thousands of sales, including new items and multiples of the same items, but they're still pretending that they're just poor old widows and widowers (and veterans, to boot, it goes without saying) just cleaning out their closets and trying to put a few scraps of food on the table. 

Baloney.

And if one of them is actually telling the truth, then that person has no worries, anyway, because (a) volunteers will do their tax returns for them for free and (b) they wouldn't owe any tax on the income.

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[pburn]

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@5594shelleys wrote:

Millions of Americans have sold an item online, and many of these sellers use those funds for critical needs such as food, medicine, and bills and are not running a business. T

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I use my non-eBay income for critical needs, as well. I assume, based on your statement, you think it would be okay for me to stop reporting it?

[maxine*j]

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@5594shelleys wrote:

Joe Manchin and Senate Majority Leader Chuck Schumer on Wednesday reached a deal on a bill that includes energy and tax policy, a turnaround after the two deadlocked earlier this month in talks on Democrats’ marquee party-line agenda. In a joint statement, the two Democrats said the legislation will be on the Senate floor next week. It includes roughly $370 BILLION in energy and climate spending.

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What does that have to do with issuing 1099s to on-line sellers?

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[5594shelleys]

TAXED TO DEATH.

THANK YOU EBAY FOR ANY HELP YOU CAN PROVIDE.

[5594shelleys]

Talk to The Coalition for 1099-K Fairness if you should need personal tax advice. 

[carlmarxx]

Schumer caved in on a lot of needed  stuff  that was on  the bill  That  Manchin  wanted  removed to get his vote .  The big item's  removed  was Expanded  Dental  care  and  converge  on hearing aids   for  those on  SSA,SSI  ,R/R    and  old  folks   retirements . But  he refuse to vote on the bill .