Will Amazon report our sales to the IRS?

[elmatador]

Does anyone know if Amazon will begin to report our sales to the IRS like paypal will do after 200 transactions or $20,000?

[ovidiu]

I don't think so. They would ask for your social security number if that was so. The law probably doesn't apply to Amazon since they are not simply a payment processor like Paypal.

[GreenBean]

OP, you report your own sales.

Earn money and tax is to be paid. That's Federal law. No excuses.

See an accountant to make sure you are complying with both your State & Federal tax laws.

[jeffweico]

Yes, Amazon will have to comply with the new rules, just as PayPal does. So, if you are near the limit, or projected to go over $20,000 and 200 sales, they WILL request your SSN or an EIN so they can report to the IRS. This applies to ALL payment processors. Amazon sellers get paid by Amazon Marketplace Payments, which is a payment processor.

[ovidiu]

Hmm, on what authority do you have that? The new law was basically specifically written to get Paypal.

[GreenBean]

Recommend you keep checking AZ sellers' community forum (& others) to keep in touch with this. It's not as simple as you may think.

Apply what jeff said & there's (part of) your answer.

[cardfelon]

Originally Posted by ovidiu

Hmm, on what authority do you have that? The new law was basically specifically written to get Paypal.

No the law was written so the IRS can collect taxes on people who sell on the internet. Any online merchant account will also have to report your sales to the IRS. It is then up to you to prove how much profit you actually did make.

[jeffweico]

This law applies to ANY ENTITY that processes credit card or debit card payments and passes them on to you. That includes PayPal, Amazon, your merchant account processor and any other sites you may sell on that accept payments and pass them on to you.

Hmm, on what authority do you have that? The new law was basically specifically written to get Paypal.

The IRS. I have read the proposed regulations (they do not have the final ones posted yet) and while eBay may have been the main target - the debate over whether or not eBay sellers were paying taxes on their profits has been raging for years - this applies to ALL processors, not just PayPal.

[123]

Yes it applies to every payment processor including amazon, it was mainly targeted to PayPal because there the largest but includes all including sites like google checkout etc

[ovidiu]

I know that Paypal alerted sellers who would be affected and demanded the social. If Amazon is doing this, they will start demanding social security numbers too. I think you have to top both 20,000 AND 200 transactions a year to be affected as well.

[cherrqell]

Originally Posted by ovidiu

I know that Paypal alerted sellers who would be affected and demanded the social. If Amazon is doing this, they will start demanding social security numbers too. I think you have to top both 20,000 AND 200 transactions a year to be affected as well.

What about if you have two paypal accounts that meet the combined requirements.

Say you have one account with 100 transactions, and 12k in sales, then another account with 110 transactions, and 9k in sales?

Would both accounts get the 1099, or would you just get one 1099 for both accounts.

Assuming ofcourse you are using all real info.


I dont think this has been addressed.

[cardfelon]

If anybody can make a stealth Amazon account last long enough to sell $20,000 in a year that would be a sight to see!

[GreenBean]

Originally Posted by cherrqell

What about if you have two paypal accounts that meet the combined requirements.

Say you have one account with 100 transactions, and 12k in sales, then another account with 110 transactions, and 9k in sales?

Would both accounts get the 1099, or would you just get one 1099 for both accounts.

Assuming ofcourse you are using all real info.


I dont think this has been addressed.

More than likely not because this thread is about AMAZON.

[newtools]

I made an in depth large post about this with some infos from the paypal blog. yes Amazon is included but just spreading your sales out will takecare of this. Just report your Total income after product, expenses and deductions as a while. you will pay taxes on the net. just like anything else.

[nobody999]

Originally Posted by newtools

I made an in depth large post about this with some infos from the paypal blog. yes Amazon is included but just spreading your sales out will takecare of this. Just report your Total income after product, expenses and deductions as a while. you will pay taxes on the net. just like anything else.

you will need a schedule C to report the expenses.....

[newtools]

no actually i believe it's called a schedule - k for internet income.

Merchant accounts, and Paypal will report directly to the IRS. Here is a good video that explains it all:

YouTube - New Rules: You and the IRS this January

YouTube - New Rules: You and the IRS this January