eBay

bangordiscount · ‎12-08-2021

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.

velvet@ebay · ‎12-10-2021

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.

Velvet,

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bbravo65 · ‎12-08-2021

...SSN = TIN...

...is this another eBay's glitch...?

dbfolks166mt · ‎12-08-2021

This seems like a really odd request and probably has more to do with the 1099 reporting requirements than it does with MP. Do you actually have a TIN? I received 1099's in 2020 and will also receive them in 2021 even before the new federal thresholds take effect since Virginia has it's own 1099 reporting laws already on the books. I have never been asked to submit a W-9.

The W-9 contains a lot of personal information that companies use to prepare your 1099 as well as to determine whether or not you are subject to backup withholding, the last one being a rather scary thought. If you are in MP eBay should already have the information they need to complete the 1099.

It may be possible there is another "glitch" with eBay preparing to get setup for the 2022 1099 reporting requirements. This may be something to contact eBay about directly either via chat or FB. A call to customer service would probably be a waste of time given their level or expertise at the moment.

I as well as others would be interested in knowing what you find out regarding this. If eBay is contemplating withholding federal tax on sales this opens up a whole new can of worms.

dhbookds · ‎12-08-2021

If eBay is contemplating withholding federal tax on sales this opens up a whole new can of worms.

Not sure they have a choice in the matter..... if the IRS has bucked back to them because the TIN/SS doesn't match, or because of income tax due, but not paid, Ebay could be required to withhold........... the same way an employer or stock company is required to withhold.

luckythewinner · ‎12-08-2021

This seems like a really odd request

The W-9 is the form that a taxpayer typically uses to provide a TIN to another party who is required to file an informational return to the IRS. Since eBay is required to file an informational return to the IRS, it does not seem very odd at all.

The W-9 contains a lot of personal information that companies use to prepare your 1099 as well as to determine whether or not you are subject to backup withholding

The W-9 contains your name, business name, TIN, address, and whether the TIN belongs to an individual, a partnership, or a corporation. The W-9 does ask if you are exempt from backup withholding, because the W-9 is a general form that covers many cases where someone might need to provide a TIN. Some of those cases have a provision for backup withholding, but the 1099-K is not one of those cases.

If eBay is contemplating withholding federal tax on sales this opens up a whole new can of worms.

The form that Congress requires eBay to file (the 1099-K) has no provision for federal tax withholding. IMHO companies do not "contemplate withholding federal tax" when they have no legal basis for doing so, because that would be against the law. IMHO speculation that eBay is going to go rogue and withhold taxes when there is no legal basis for doing so seems a bit over the top.

dbfolks166mt · ‎12-08-2021

Agree and this may in fact become a new hurdle heading into 2022 and an ugly one at that especially if it is universally applied to all sellers. Not sure of the OP's current tax status or situation but I already pay into the IRS on a quarterly basis to avoid the potential penalties during year end filing. If this is limited to certain sellers one has to wonder what triggered the IRS pushback given we are not into the 2022 year yet.

dbfolks166mt · ‎12-08-2021

That is what seems strange about the W-9 request given eBay already has that information if you are in MP. Maybe OP is a registered business where EIN = TIN.

rmags1 · ‎12-08-2021

I've been selling on ebay for years and they've never asked me for this information. I filed our taxes just fine earlier this year without providing ebay with a W-9. I don't have a TIN -- just a SSN. I'm very confused as to why they would be suddenly asking for this information that I've never had to give them in the past without warning?

downunder-61 · ‎12-08-2021

This question was asked over in Ask a Mentor - eBay Rep's replied, I will try to find it..........

Found it..........

https://community.ebay.com/t5/Ask-a-Mentor/TIN-Letter-saying-eBay-will-withhold-24-is-this-scam/m-p/...

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I have been imported from Australia and this is my posting ID

rfmtm · ‎12-08-2021

Do you have a personal or business ebay account?

If business, is it a sole proprietorship?

Do you have an EIN, TIN, or just your SSN?

jayjaspersgarage · ‎12-08-2021

This specific error looks like something high volume sellers in 2021 who haven't reported income for past years may have to worry about more than the minnows.

downunder-61 · ‎12-08-2021

From velvet at eBay:

Form W9 is an IRS form for providing necessary information to a person or company that will be making payments to another person or company.

While I can't get into specifics, there are certain instances in which we may require this of a seller and it appears the OP fell into one of those instances. You could try contacting the Payments team to see if there is any additional information they would be able to share with you, but this is all I have to provide.

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I have been imported from Australia and this is my posting ID

ohgollythrift · ‎12-08-2021

I received this same notice today and I'm super confused.

I'm a sole proprietor and my SSN is already in my business details. I also have an EIN but there's no where to enter it on eBay that I can find. Do I just send in the W9 with my EIN and SSN and hope for the best?

dhbookds · ‎12-08-2021

No reason anyone/including the Original Poster/ should get "hinkyed" up about this...... Could be an incorrect #/non matching name/old address.....etc......between what information the IRS has and what ebay has......... Not everyone has/needs a TIN/EIN number........

rfmtm · ‎12-08-2021

If you have a business account and you want your taxes reported under your business ID there is a place to enter either your EIN or TIN, near the middle of the business information page. You still have to supply your SSN further down the page for personal or corporate officer ID as required by the IRS.