Amazon is about to ask for SSN/EIN

[incniu]

http://www.amazon.com/gp/help/customer/display.html?nodeId=200663310
Beginning with the 2011 tax year, new Internal Revenue Service (IRS) regulations require that U.S. payment processors, including Amazon, file Form 1099-K to report annual gross sales information for sellers that meet both of the following thresholds in a calendar year:

More than $20,000 in gross sales, and
More than 200 transactions.

The regulations also require that Amazon obtain taxpayer identification information from all sellers, regardless of gross sales and transaction volumes, in order for backup withholding not to apply on gross sales.



is it better to apply for an EIN?

any tax advise?

[incniu]

it seems impossible to have multiple accounts if amazon requires SSN for each account..






What information am I required to provide to Amazon?

To ensure that we report accurate information to the IRS, we will need you to provide the following:

Business contact information (physical address, e-mail address, phone number)
Legal name
Taxpayer Identification Number (TIN).

A TIN is required by the IRS for the administration of tax laws. In most cases, your TIN is either an Employer Identification Number (EIN) or a Social Security Number (SSN). Use the following information to help determine which number to provide:

Business entity with an EIN: Provide your company EIN and the legal name of the entity. Do not provide a DBA (doing business as) name with your EIN.

Sole proprietor with an EIN: Provide your company EIN and your legal name as an individual. Do not provide a business name or DBA name with your EIN.

In general the IRS views a sole proprietor as a business that is not being conducted in a legal entity structure such as a corporation or partnership.

Individual seller or sole proprietor without an EIN: Provide your SSN and your legal name as an individual. Do not provide a business name or DBA name with your SSN.

Learn how to obtain an EIN at the IRS website.

[rsot]

There is another ongoing discussion about this. I don't care to link the post but it's there =)

[guitarca18]

Looks like the thread is closed.

I have always declared all my online sales. The 1099 part does not bother me. In fact it will make it easier for me.

What I am concerned with is having multiple Amazon accounts. I currently have 3 running and would like to keep it that way. I'm thinking of registering for 3 separate EIN's but I am wondering what people are doing for names and addresses on the EIN and accounts. Obviously if they are going to send you a 1099 its going to look a little funny if it is in someone else's name. Amazon is claiming they want a legal name and no DBA's so I'm assuming that is what would show up written on your 1099. In addition you need to have a valid address to get that one piece of mail a year (that sucks).

[incniu]

1) It is really bad if amazon needs SSN/EIN for every account, even if your sales doesnot reach the 20k.

2) I buy lots of items from different stores and then sell them on amazon. do I need to keep all receipts when I buy items for calculating the net profit?

3) 1099 K is just for gross receipt of payment, not net income. What does IRS do with it?


thanks

Originally Posted by guitarca18

Looks like the thread is closed.

I have always declared all my online sales. The 1099 part does not bother me. In fact it will make it easier for me.

What I am concerned with is having multiple Amazon accounts. I currently have 3 running and would like to keep it that way. I'm thinking of registering for 3 separate EIN's but I am wondering what people are doing for names and addresses on the EIN and accounts. Obviously if they are going to send you a 1099 its going to look a little funny if it is in someone else's name. Amazon is claiming they want a legal name and no DBA's so I'm assuming that is what would show up written on your 1099. In addition you need to have a valid address to get that one piece of mail a year (that sucks).

[cherrqell]

Originally Posted by incniu

1) It is really bad if amazon needs SSN/EIN for every account, even if your sales doesnot reach the 20k.

2) I buy lots of items from different stores and then sell them on amazon. do I need to keep all receipts when I buy items for calculating the net profit?

3) 1099 K is just for gross receipt of payment, not net income. What does IRS do with it?


thanks

If your that concerned, I would get a tax accountant/attorney to help you navigate through this new variable.