eBay needs to assure sellers NOW and make an announcement! No 1099-K forms will be issued for 2022!

[avvid]

eBay needs to assure sellers NOW and make an announcement! No 1099-K forms will be issued for 2022!  For gross sales under $20,000!

I'm a little uneasy because I know earlier this year they "mistakenly", "inadvertently" (and arguably "incompetently") jumped the gun and issued some eBay sellers the 1099-K forms for sales in 2021!   They issued it to the IRS AND California Franchise Tax Board.   When mistakes like that happen, I imagine it's near impossible to sort out (without raising yellow and red flags with the IRS).

I think it's wonderful news that the IRS will delay (by one year) the required reporting by eBay, Poshmark, Etsy, Paypal, et al.  But I really want assurances from eBay that they aren't going to mess this up!    Many of us are just unloading used stuff from our shelves, closets, etc.  We're not formal businesses with on staff accountants and receipts dating back years, perhaps decades.  Many of us are selling at a loss, especially when factoring in eBay fees and shipping.

[indianasc]

Hi Mike,

I can't show anyone where the IRS says you don't have to report all income, but I can copy and paste from IRS publications that say we do. Hope this helps support what you are saying. People should note that the IRS doesn't use the term "profit". They say "income". It is up to the taxpayer to prove profit or loss on their tax return.

IRS Publication 525

Sale of personal items.

If you sold an item you owned for personal use, such as a car, refrigerator, furniture, stereo, jewelry, or silverware, your gain is taxable as a capital gain. Report it as explained in the Instructions for Schedule D (Form 1040). You can't deduct a loss.

Example 39.

You sold a painting on an online auction website for $100. You bought the painting for $20 at a garage sale years ago. Report your $80 gain as a capital gain as explained in the Instructions for Schedule D (Form 1040).

News Release From the IRS

IR-2022-189, October 24, 2022

WASHINGTON — The Internal Revenue Service reminds taxpayers earning income from selling goods and/or providing services that they may receive Form 1099-K, Payment Card and Third-Party Network Transactions, for payment card transactions and third-party payment network transactions of more than $600 for the year.

There is no change to the taxability of income; the only change is to the reporting rules for Form 1099-K. As before, income, including from part-time work, side jobs or the sale of goods, is still taxable. Taxpayers must report all income on their tax return unless it is excluded by law, whether they receive a Form 1099-NEC, Nonemployee Compensation; Form 1099-K; or any other information return.

The IRS emphasizes that money received through third-party payment applications from friends and relatives as personal gifts or reimbursements for personal expenses is not taxable.

The American Rescue Plan Act of 2021 (ARPA) lowered the reporting threshold for third-party networks that process payments for those doing business. Prior to 2022, Form 1099-K was issued for third party payment network transactions only if the total number of transactions exceeded 200 for the year and the aggregate amount of these transactions exceeded $20,000. Now a single transaction exceeding $600 can trigger a 1099-K.

The lower information reporting threshold and the summary of income on Form 1099-K enables taxpayers to more easily track the amounts received.

Generally, greater income reporting accuracy by taxpayers also lowers the need and likelihood of later examination.

[mam98031]

@indianasc 

EXCELLENT information.  Would you please provide links to where you located the info.  It would be greatly appreciated.

[indianasc]

@mam98031

It can be found by Googling  IRS Publication 525 for the first reference. You have to go way down to find it, but it is there. For the news release, this is the link https://www.irs.gov/newsroom/reminder-service-providers-others-may-receive-1099-ks-for-sales-over-60...  It was intended to give taxpayers a heads up on the new $600 threshold for 1099Ks, but it does clarify the requirement for reporting any income, regardless of how or where it is earned.

[mam98031]

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@indianasc wrote:

@mam98031

It can be found by Googling  IRS Publication 525 for the first reference. You have to go way down to find it, but it is there. For the news release, this is the link https://www.irs.gov/newsroom/reminder-service-providers-others-may-receive-1099-ks-for-sales-over-60...  It was intended to give taxpayers a heads up on the new $600 threshold for 1099Ks, but it does clarify the requirement for reporting any income, regardless of how or where it is earned.

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@indianasc 

Thank you so much for giving this link.  There are so many sellers that believe they do not have to report their income it is simply silly.  A FORM has never control what the IRS minimum threshold is for reporting income, but some insist it is, however that makes no sense whatsoever.

So again, THANK YOU.

[leaf_peeper]

regardless of  eBay not issuing 1099-K forms for under $20K in sales for 2022, they will not release my funds to me (under $1000 sales)  unless I provide my full ssn to them.   I just spent 30+ minutes chatting with them - waste of time.  I’ve pulled my remaining items so they can’t get any more of my funds.  IRL I’m a tax professional and diligently report all taxable income - my issue is that I don’t trust eBay or anyone else with my ssn unless it’s absolutely required - which it is not for 2022. 

[valueaddedresource]

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@leaf_peeper wrote:

regardless of  eBay not issuing 1099-K forms for under $20K in sales for 2022, they will not release my funds to me (under $1000 sales)  unless I provide my full ssn to them.   I just spent 30+ minutes chatting with them - waste of time.  I’ve pulled my remaining items so they can’t get any more of my funds.  IRL I’m a tax professional and diligently report all taxable income - my issue is that I don’t trust eBay or anyone else with my ssn unless it’s absolutely required - which it is not for 2022. 

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@leaf_peeper the requirement for an SSN isn't just about the 1099-K, eBay is also required to collect that information to verify seller identity under the INFORM consumers act which was just passed on the federal level as part of the omnibus bill and there are also several similar state level laws as well.

Also remember that just because laws set a threshold for when eBay must require such info, that doesn't mean they are prohibited from requiring it under their terms and conditions at any point below that.

[dbfolks166mt]

regardless of  eBay not issuing 1099-K forms for under $20K in sales for 2022, they will not release my funds to me (under $1000 sales)  unless I provide my full ssn to them.   I just spent 30+ minutes chatting with them - waste of time.  I’ve pulled my remaining items so they can’t get any more of my funds.  IRL I’m a tax professional and diligently report all taxable income - my issue is that I don’t trust eBay or anyone else with my ssn unless it’s absolutely required - which it is not for 2022. 

.    Your option of course but if you fail to provide your SSN eBay will at some point turn your on hold funds over to your state where you can go to try and claim them. In the grand scheme of things I have no issue with eBay having my SSN it is probably as safe as any of the banks, CC companies, third party financial processors, doctors, state entities, federal entities, past employers........ that all have my SSN. 

[techdeal-2023]

ebay keeps asking me for my ssn they are in fact holding my payouts i will not

give them anything of the sort ebay better give me my money i dont owe any irs nothing

the irs owes me money i demanding that ebay stop this 1099 fraud now 

[downunder-61]

The IRS announcement:

https://www.irs.gov/newsroom/irs-announces-delay-for-implementation-of-600-reporting-threshold-for-t...

eBay's announcement:

https://www.ebaymainstreet.com/news-events/irs-announces-delay-new-600-1099-k-tax-reporting-threshol...

which states "...only sellers who:

1) exceed the previous threshold of $20,000 and 200 transactions,

2) that were subject to backup withholding or,

3) whose states of residence have a lower reporting threshold 

will receive a Form 1099-K."

Thank you shipscript(eBay Mentor) for information

[mam98031]

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@leaf_peeper wrote:

regardless of  eBay not issuing 1099-K forms for under $20K in sales for 2022, they will not release my funds to me (under $1000 sales)  unless I provide my full ssn to them.   I just spent 30+ minutes chatting with them - waste of time.  I’ve pulled my remaining items so they can’t get any more of my funds.  IRL I’m a tax professional and diligently report all taxable income - my issue is that I don’t trust eBay or anyone else with my ssn unless it’s absolutely required - which it is not for 2022. 

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@leaf_peeper 

This is true and it is stated in the policies for Managed Payments.  It is a requirement that the Federal Law requires of Money Processors now.

Please review the below link carefully. It contains very important information as to how Ebay needs to see the information you provide them on your account. It is likely easier to change your Ebay account to match your bank account if you find there to be a difference.

https://www.ebay.com/help/selling/getting-paid/registering-seller?id=4792

https://community.ebay.com/t5/Payments-Resources/Have-questions-about-payments-Check-out-this-post-f...

And this is what is required by law for Ebay to collect.

https://www.fdic.gov/regulations/laws/rules/8000-1600.html#fdic8000fra1020.220

[mam98031]

@leaf_peeper 

Another thing you need to be aware of as a returning seller.

Ebay has had a rule for many years that pertains to New Seller and sellers that have been away from selling for 90+ days. The following is the policy that outlines why you money is likely on hold.

https://export.ebay.com/en/fees-and-payments/payments/payment-holds/

https://www.ebay.com/help/selling/getting-paid/getting-paid-items-youve-sold/payments-hold?id=4816&&...

[mam98031]

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@techdeal-2023 wrote:

ebay keeps asking me for my ssn they are in fact holding my payouts i will not

give them anything of the sort ebay better give me my money i dont owe any irs nothing

the irs owes me money i demanding that ebay stop this 1099 fraud now 

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@techdeal-2023 

This has nothing to do with your 1099K or lack thereof.  I just posted a couple of things for another poster that feels the same way you do.  You may want to review those posts.

[mam98031]

This is great information and has been posted a few times on this thread.  But still good to post again.

[readabouthorses]

I wonder why they chose to put that Announcement on Main Street site and not on regular eBay site?

[devon@ebay]

Hi everyone! We have just posted more information on the IRS announces delay in new $600 1099-K tax reporting threshold on our announcement page here on community.