tax and SSN

[o*red64]

Hello,

I'm reluctantly trying to get up and selling, but I need help. I just can't accept giving Ebay my SSN, since I've been abandoned and abused as a seller on Ebay. It's a trust issue. So I'm wondering if others have an alternative to the SSN.

Related is a payout I've never received. Ebay has my money, claiming I surpassed the $600 threshold and must provide SSN or TIN for tax withholding. But I didn't sell that much: my last sale was not completed, Ebay knows all about it, since they received the purchase money, the tax on the buyer, took their cut, ended up refunding the buyer, then insisited that because of the sale I reached the $600 threshold. I've called and talked to Ebay 9 times. But "talking to Ebay" means nothing if you can't get past the lower level. So I know that's 2 issues. I just don't know how to proceed. I want my payout, and I want a secure means of providing tax withholding information.

[caldreamer · Accepted solution]

Government law requires EBAY to get your SSN (if you don't provide that you won't get paid). 

[kensgiftshop]

If you want paid, you have 1 option, provide your SSN.

If the buyer paid, then refunded, it still counts as income.

[dentalsales4u]

Providing your SS# is an IRS thing, not eBay. It's the law.

Your sale must have been over $600. This includes shipping costs also if you charged shipping.

If order was returned/canceled and buyer was refunded, you need to do that adjustment on your taxes.

As far as eBay is concerned, you had a sale, what happened after that is up to you to deal with on your taxes with write offs.

No way around not providing your SS number if you want to get paid.

[tobaccocardyahoo]

The law is the law, Ebay is functioning as a payment processor and needs your SSN for all sales you made as an individual.

Nothing you do can avoid that.

If you want to avoid having them use your SSN in the future you can create a corporation and create a selling account for it using its EIN. You can then pay franchise taxes and perhaps income taxes, in its state of incorporation as well as deal with filing returns for it with the IRS,

[luckythewinner]

So I'm wondering if others have an alternative to the SSN

You can apply for an EIN and use that.

https://www.irs.gov/individuals/international-taxpayers/us-taxpayer-identification-number-requiremen...

they received the purchase money, the tax on the buyer, took their cut, ended up refunding the buyer, then insisited that because of the sale I reached the $600 threshold.

The 1099-K law is about reporting payments, not sales. The law requires eBay to report to gross amount of payments received, even if they are later refunded.

So it was not eBay that insisted, it was the IRS and Congress.

[krazzykats]

If you want to sell on eBay, give it up, the rest of us already have.

[monica-sells]

Sorry to be honest here, but....

".... I just can't accept giving Ebay my SSN, since I've been abandoned and abused as a seller on Ebay. It's a trust issue...."

Why in the world would you even consider dealing with online sales based on this statement? (abandoned and abused, yet you come back for more?)

Selling online is similar to driving a truck long haul...it takes a different breed and mindset....

[maxine*j]

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@o*red64 wrote:

... I just can't accept giving Ebay my SSN, since I've been abandoned and abused as a seller on Ebay...  

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I can't imagine why you would continue to sell where you have been "abandoned and abused," but I suppose that is neither here nor there.

Federal law requires that eBay have your SSN.  If you do not wish to give it to eBay, eBay cannot send you your money.  Instead, eBay will at some point send the money the funds to the state of North Carolina, and from there you can work with the state to claim it -- after providing your SSN and other info:

https://www.nctreasurer.com/unclaimed-property

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[mam98031]

@o*red64 

OK, you need to explain this " I just can't accept giving Ebay my SSN, since I've been abandoned and abused as a seller on Ebay. "  That is highly protected information.  Even the seller themselves can't see the info because it is encrypted.  So how was it abused?

Yes, you have three alternatives:

Provide your SSN.

File for an EIN: 

https://www.irs.gov/businesses/small-businesses-self-employed/how-to-apply-for-an-ein

File for a TIN if you qualify:

https://www.irs.gov/individuals/international-taxpayers/taxpayer-identification-numbers-tin

Or do none of the above and Ebay will be required by law to withhold 24% for federal taxes.

Keep in mind the way Ebay and ALL online marketplaces track your money is by how much you received, not how much you cleared after costs.  The two are completely different numbers of course.

[soh.maryl]

When you say you are "reluctantly trying to get up and selling", does that mean you really don't want to do it? And you don't want to give your SSN? So why enter into the selling game here if you don't really want to do it nor do you want to comply with its requirements?  

PS:  And it appears that you have actually sold here before, but it's been at least a year ago.

Keeping that in mind, are you aware that you will be treated like a new seller, meaning payments can be held for 30 days and you may have a selling limit.  

How were you "abandoned and abused"? And you really want to sell on a site where you were mistreated?  

[stainlessenginecovers]

Post #3  by @kensgiftshop says it all- short and sweet. Gross is Gross, sold is sold (whether you are paid and then refund or...).

Plus, the site does NOT wait UNTIL you get to $600- if you list things that 'could add up to' $600 or more, they MUST COLLECT the SS# per IRS and some State 'Laws'.

There is NO work around to you listing on most ANY 3rd Party Seller platform (and there are many and they ALL have the same requirement)

[mam98031]

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@stainlessenginecovers wrote:

Post #3  by @kensgiftshop says it all- short and sweet. Gross is Gross, sold is sold (whether you are paid and then refund or...).

Plus, the site does NOT wait UNTIL you get to $600- if you list things that 'could add up to' $600 or more, they MUST COLLECT the SS# per IRS and some State 'Laws'.

There is NO work around to you listing on most ANY 3rd Party Seller platform (and there are many and they ALL have the same requirement)

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That is not the only option.  It is likely what many of us do, but not the only option.

There are four alternatives:

Provide your SSN.

File for an EIN: 

https://www.irs.gov/businesses/small-businesses-self-employed/how-to-apply-for-an-ein

File for a TIN if you qualify:

https://www.irs.gov/individuals/international-taxpayers/taxpayer-identification-numbers-tin

Or do none of the above and Ebay will be required by law to withhold 24% for federal taxes.

[mtgraves7984]

 "... since I've been abandoned and abused as a seller on Ebay."

@o*red64 

Take a look at the "trust issue".

Since you sold last, it's even harder here nowadays for sellers. Probably whatever bamboozled you before could still again... not to mention all of the new things that'll bamboozle you since you last sold.

There's no way to get around providing info to get paid here, and no way to get around current policies to sell here. Only you can decide if you want to take another chance on eBay... but I see a listing. Hoping the best for you.

[maxine*j]

Unless the law has changed, one needs to provide an SSN to get an EIN. 

Unless the law has changed, an ITIN is for a non-citizen who does not have and/or is not eligible for an SSN.  Unless the law has changed, the number is for filing a federal income tax return, not for conducting business within the U.S.

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