mam98031 • Volunteer Community Member • Buyer/Seller since 1999
I checked my seller hub this morning and saw the below error (see attached): I haven't made any changes to my status as a seller with the IRS and I thought I always filed just using my SSN when it came time to do my taxes. Now it looks like eBay is requesting a W-9.
Is this affecting anyone else? I believe this has to be an error on eBay's side, maybe to do with managed payments, but I don't want to ignore and end up in eBay jail and have my listings become affected.
@ohgollythrift wrote:It seems odd that the IRS hasn't sent anything in mail to ANYONE dealing with this issue besides ebay.
I personally don't find that Odd since Ebay is the responsible party to issue the 1099Ks. They would also be the one's responsible for withholding taxes if it became necessary.
@gracieallen01 wrote:Just a thought, but the IRS isn't sending e-mail (notification) out - ebay is. Perhaps it has something to do with collecting.
To my knowledge, the IRS does not send email notifications. It is an unsecured method of communicating.
@bangordiscount wrote:Can you continue to post updates?
I'm hesitant to upload a w9 as I'm not sure exactly what information eBay is looking for and I don't want to give them something that conflicts with what they have on record since I've had this account since 1999 and had several different "primary" addresses in that time span and I don't want to go through the hassle of having an account restriction or payment holds just because I send them something different then what they are looking for.
But it amazes me that I file as a sole proprietor using my personal SSN and have never had tax issues and furthermore they're not requesting any information from my secondary selling account which uses the exact information from this account.
I never had problems with PayPal in regards to the 1099-K, I didn't have problems getting into managed payments and I just don't understand what is causing the account to get flagged now and they're vagueness is unsettling.
You would need to be using your Current Primary address you have on Ebay. Now if your IRS records do not reflect your current address, I would say go to IRS and get your address corrected BEFORE your file the W9 as this is likely what has caused your problem in the first place.
Rules have changed on the CIP [Customer Identification Program] that money processors are now required to comply with in concert with the needs required by the Anti Money Laundering law. The Federal government is really clamping down on the compliance with these laws.
https://www.fdic.gov/regulations/laws/rules/8000-1600.html#fdic8000fra1020.220
@ohgollythrift wrote:
@bangordiscount wrote:Can you continue to post updates
Yeah I plan to. I'm just confused how this seems to be affecting a very limited amount of users. Unless most people aren't talking about it. I know a good handful of resellers in my area who don't even pay taxes. Haven't seen them post anything on their socials about any ebay issues. Meanwhile here we all are.
Well that doesn't mean much as some people do whatever they can to avoid paying taxes that they should be paying. For this very reason the 1099Ks were created in 2012. Solely because of so many internet sellers getting away with not claiming their income on their tax returns.
Things change a bit in 2022 that will affect a whole lot more sellers. The threshold for the 1099K drops from $20K to $600 per year. So a whole bunch of sellers that have never reported their income will be reporting next year. Now some will need to report but find it won't increase their taxes if they are ONLY selling certain items from around the home. Nothing is purchased for resale and nothing is being sold on behalf of others. Just stuff from their own closets.
So IRS is really tightening their belts this year likely to be prepared better for next year. So their are doing some clean up they have likely needed to do for awhile.
You are right, until this thread and another one that I've read. I too have not heard of this crack down with the W9s. Ebay certainly hasn't announced anything. I also sell on a couple other sites and they haven't announced anything either. That certainly doesn't mean it isn't going on with these other sites, it only means they haven't announced it.
Recently eBay, as required by the IRS, sent a letter and notice to a very small number of sellers requesting they complete a physical Form W-9. This was because there were discrepancies with the Tax ID and name provided to us, which was then reported on their Forms 1099-K for the 2020 tax period.
If you received a notice by mail, we ask that you complete the Form W-9 and return it by December 17th. In addition to the notice, you should have received a banner communication upon logging into your eBay account which contains a link that will allow you to digitally upload your Form W-9. In order to process your updates in a timely manner, we encourage you to use the upload feature to avoid delays.
If you did not receive a letter and notice you are not required to complete a W-9.
Thank you for selling on eBay.
