Sellers Ask Questions About eBay Managed Payments IRS 1099-K
Reading Time: 2 minutes In the community forums on eBay, members asked questions if eBay would issue 1099-K document as required by the IRS.
Most sellers know if they sell more than $20,000 and have over 200 transactions in a calendar year, PayPal will issue a 1099-K.
An eBay team member on 1/25 responded that they would get back to sellers about this question, but that team member has provided no further updates in the thread.
Since there have been more recent postings by sellers after the IRS deadline for issuing the 1099-K past, it seems eBay Managed Payments program may lag with the IRS requirement.
1099-K Not Required to File Taxes, But…
While sellers should know how much they sold through regular accounting of their sales and the 1099-K is not required to file business taxes, one wonders why the silence on the subject?
READ MORE:Â eBay Has Only About 3,500 Sellers in eBay Managed Payments Beta
It is possible that few sellers reached this federal threshold with eBay Managed Payments, but there are states that have much lower thresholds starting at $600.
READ MORE:Â Massachusetts and Vermont Sellers Surprised by 1099-K Forms
If eBay is having difficulties issuing the required document, the company should really communicate this information with sellers that opted into their eBay Managed Payments beta.
Failing to answer this question on an eBay community forum is not a way to build trust in the program.
If your sales exceeded the threshold to receive a 1099-K from eBay, did you get one? Please use the comments section below or head over to our Facebook Group for Small Business Sellers and interact with other small business owners.
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Richard Meldner
Richard is co-founder of eSeller365. He has over 17 years of experience on eBay which includes tens of thousands of sales to buyers in over 100 countries and even has experience with eBay’s VeRO program enforcing intellectual property rights for a former employer. And for about two years Richard sold products on Amazon using Amazon FBA in the US.
To “relax” from the daily business grind, for a few weekends a year, he also works for IMSA as a professional race official.
the reason is ebay refuses to tell anyone is because they plan on sending a 1099-k every year to everyone who
sells anything over 1 dollar,my guess, this con the ebay is using to help the irs for anyone’s info if you take a credit card as ebay wants you to do the bank by law will send a 1099-k or ebay will do it, this con ebay is using instead of staying with PayPal only i want nothing to do with this payment system ebay is forcing on us
ebay sellers protest this new payment system now
It’s not really a con and has nothing to do with going away from PayPal. PayPal has to send out 1099-K documents too and so does every other payment processor that operates in the US. It is important to remember that a 1099-K only tells the IRS and state tax authorities how much money the payment processor processed for the seller. If those sales are income and have to be taxed, sellers will have expenses against them, so they are not paying tax on the gross sales amount reported on a 1099-K.
Richard
We get a 1099 k from PayPal,
only if we do $20,000 and 200 transactions, per IRS. Now, who knows if eBay will stick to the same rules. It is not illegal for any processor to send you a 1099k no matter how much you sell. They could send them to everybody.
Agreed. This is terrible. I also don’t want them having my bank account information. Also, the GSP really helped me out. Now, sellers will take all the risk and expense for shipping internationally. This move is going to save eBay a lot of money and cost us big time.