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.

[mam98031]

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@readabouthorses wrote:

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

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I found that interesting too, but they have it all taken care of now.

[buyologist-3]

"Not at all saying it's right but at the end of the day, most sellers on eBay are here to make extra income for whatever they need it for. So, they should be reporting that income."

Awwwwwwwwww~~ If only politicians and the 1% felt that way.....

[mam98031]

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@buyologist-3 wrote:

"Not at all saying it's right but at the end of the day, most sellers on eBay are here to make extra income for whatever they need it for. So, they should be reporting that income."

Awwwwwwwwww~~ If only politicians and the 1% felt that way.....

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Two wrongs don't make it right nor does it make it legal.  You want to risk it, that is up to you.

"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."

https://www.irs.gov/newsroom/reminder-service-providers-others-may-receive-1099-ks-for-sales-over-60...

As you can see, the announcement clearly tells us that the rules for reporting income has NOT change.  The ONLY thing that changed was the 1099K FORM.

[motoinfo]

Why???  When 95% of what I sell is 1) something I already paid full price for, and 2) already paid taxes on it, now you want me to report it to the IRS AND pay at the personal tax rate!!  Wow, just wow.  Why don't you throw an extra $1,000 in on your tax bill for the U.S. Treasury just for good measure and be a "pay your fair share" citizen?

[mam98031]

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@motoinfo wrote:

Why???  When 95% of what I sell is 1) something I already paid full price for, and 2) already paid taxes on it, now you want me to report it to the IRS AND pay at the personal tax rate!!  Wow, just wow.  Why don't you throw an extra $1,000 in on your tax bill for the U.S. Treasury just for good measure and be a "pay your fair share" citizen?

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@motoinfo 

This is NOT true.  You really need to do more research.  There is power in knowledge and in this case there is money savings too.

https://community.ebay.com/t5/Announcements/eBay-and-TaxAct-partner-to-help-you-navigate-new-Form-10...

https://www.irs.gov/faqs/small-business-self-employed-other-business/income-expenses/income-expenses

https://www.irs.gov/businesses/gig-economy-tax-center

https://pages.ebay.com/seller-center/service-and-payments/2022-changes-to-ebay-and-your-1099-k.html

[motoinfo]

Thanks but you didn’t address the point I was making in the post. I hope you have a good CPA.

[mam98031]

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@motoinfo wrote:

Thanks but you didn’t address the point I was making in the post. I hope you have a good CPA.

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Not sure what you want to be honest.  I gave you links for you to review in your own time.  What you stated is incorrect.  The links will help you with that.  It is completely up to you.  I'm fine, as I understand the IRS rules that pertain to me.  But you misunderstand how you value the items you are selling from your own personal stuff.

[crex78]

The original poster did state that they are selling the stuff they are selling on Ebay at a loss, so I am not sure why you put "I'm sure you and everyone else reading this thread understands that this in no way affects an eBay seller's responsibility to report their eBay income".

In this very specific case, there is no income.

[crex78]

The original poster already clarified that their Ebay sales is NOT income. Why do people keep harping on this point? Millions of ebay sellers sell everything they sell at a loss from what they bought it from. People using ebay to profit on collectibles fail to realize this.

[crex78]

Another IRS cheerleader. The original poster already stated that their ebay sales are NOT income.

[crex78]

The original poster stated up front that their ebay sales are NOT income. They are not evading income taxes if they do not report their ebay sales.

[crex78]

I pay all my taxes from sales made on ebay but I understand that millions of ebay sellers are selling their items at a loss and they do not need the added hassle of having to prove what a dvd they purchased 15 years ago cost them. IRS cheerleaders want to guilt people into thinking its acceptable to be okay with all these sellers being burdened with unwarranted paper work. It is not okay.

[crex78]

And yet another IRS cheerleader. The original poster already stated that their ebay sales are not income, and that they do not have receipts for most of what they are selling.

[dryophelia]

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@crex78 wrote:

The original poster did state that they are selling the stuff they are selling on Ebay at a loss, so I am not sure why you put "I'm sure you and everyone else reading this thread understands that this in no way affects an eBay seller's responsibility to report their eBay income".

In this very specific case, there is no income.

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But there is income. 
The onus is on the seller to show how much of that income was profit. 

[riv.micha]

You understand the IRS can just look into your bank account.  you need to report sales.