Amazon IRS Reporting Regulations FAQ

[poofay]

I found this FAQ page on Amazon, and I think it is a really great read for everyone wanting more info on how the new IRS laws are going to effect Amazon sellers.

hxxp://www.amazon.com/gp/help/customer/display.html?nodeId=200663310


This next link directs you to what info Amazon is going to require from all sellers.

hxxp://www.amazon.com/gp/help/customer/display.html?nodeId=200663310#info

edit: I don't know if the forum's rerouting made the links mess up so I posted them without the hyperlink. They should be fixed!

[Gamefreak]

Cant view the links...

Check this out from the FAQs

If I have multiple seller accounts that exceed the thresholds when the account totals are combined, but that do not exceed the thresholds as individual seller accounts, will you file Form 1099-K for my combined seller accounts?
Yes. Gross sales and transaction volumes will be consolidated for all accounts that have the same Tax Identification Number (TIN). We will report all accounts with the same TIN on Form 1099-K as required by the new regulations. Learn more about TINs in the answer to the next question directly below.

[poofay]

Originally Posted by Gamefreak

Cant view the links...

Check this out from the FAQs

If I have multiple seller accounts that exceed the thresholds when the account totals are combined, but that do not exceed the thresholds as individual seller accounts, will you file Form 1099-K for my combined seller accounts?
Yes. Gross sales and transaction volumes will be consolidated for all accounts that have the same Tax Identification Number (TIN). We will report all accounts with the same TIN on Form 1099-K as required by the new regulations. Learn more about TINs in the answer to the next question directly below.

Yes, they will link your accounts if you give them the same TIN for each account. They'll not only file a 1099-K for you, they'll probably suspend every ghost account you link with that TIN for free too. Right now, I think getting an EIN for each account will work in keeping your ghost accounts untraceable. However, the IRS isn't stupid. They know who the proprietor of those EIN's are. Keep records and file your taxes.

Also according to the FAQ, Amazon won't submit a 1099-K until you reach both the 200 sales and $20,000 gross revenue threshold.

[Gamefreak]

Yeah im there in 1 month so im expecting mine on 3 different accounts sadly. Gonna have to talk to a tax person to figure out to work this out best for my business.

[DogFacedBoy]

Originally Posted by poofay

Yes, they will link your accounts if you give them the same TIN for each account. They'll not only file a 1099-K for you, they'll probably suspend every ghost account you link with that TIN for free too. Right now, I think getting an EIN for each account will work in keeping your ghost accounts untraceable. However, the IRS isn't stupid. They know who the proprietor of those EIN's are. Keep records and file your taxes.

Also according to the FAQ, Amazon won't submit a 1099-K until you reach both the 200 sales and $20,000 gross revenue threshold.

Both?
so if you haul in over $20,000, but only do like 175 transactions you'd be safe?

[poofay]

Originally Posted by DogFacedBoy

Both?
so if you haul in over $20,000, but only do like 175 transactions you'd be safe?

If you mean safe as in Amazon won't ask for your TIN then no. Amazon is going to ask for your TIN if you sell one item for a penny to selling thousands of items for millions in revenue, but they will not send the IRS a 1099-k until you fulfill both of those requirements.