this is what I found. Looks like even with new accounts they will ask for it..
Amazon posts tax reporting FAQ for third-party sellers
By Steve Weber | Published: April 26, 2011
I haven’t gotten it yet, but several other Amazon sellers have received the e-mail below. It contains a link to a new IRS reporting FAQ which explains that in 2012 you’ll begin receiving Form 1099-Ks detailing your income from Amazon selling if your gross sales for a calendar year exceed $20,000 and you have more than 200 transactions in that same year. The 2012 forms will report your income from this calendar year. So if you’re a sole proprietor like most of us, the IRS will also be expecting to see quarterly estimated tax payments beginning at the end of this month — assuming you’ve made a profit. If you don’t pay — or you under-pay — there can be penalties when you file your 2011 federal tax return. Amazon says we’ll have the options of receiving the 1099s via postal mail, electronic delivery, and you’ll also be able to reprint it from your seller account. I’m sure Seller Support has been inundated with inquiries about this, hence the new FAQ. Of course, if you live in a state with an income tax, you’ll probably need to file quarterly estimated tax payments with the state, too.
Hello from Amazon,
We’re writing to let you know about new Internal Revenue Service (IRS) regulations that may impact your seller account.
Beginning with the 2011 tax year, new IRS regulations require that U.S. payment processors, including Amazon, file Form 1099-K for sellers that exceed $20,000 in gross sales and 200 transactions in a calendar year. The regulations also require that registered sellers (regardless of account status and sales volume) have taxpayer identification information on file in order for backup withholding not to apply on gross sales.
As a result of the new regulations, Amazon.com sellers will be required to provide taxpayer identification information to Amazon. If the required information is not provided to Amazon in 2011, your Amazon selling privileges will be suspended until you provide the information.
We are committed to making this process simple. In the coming months we will provide instructions on how to enter the required information directly into your seller account. To help protect the security of your taxpayer identification information, we will not ask you to disclose it by e-mail or over the phone.
See answers to frequently asked questions and check back occasionally for updates:
http://www.amazon.com/gp/help/customer/display.html?nodeId=200663310
Learn more about the regulations and Form 1099-K at the IRS website:
Final Regulations on Payment Card Reporting
Important Notice: Information in this document does not constitute tax, legal, or other professional advice and must not be used as such. To find out how this new legislation will affect your business, or if you have other questions, please contact your tax, legal, or other professional advisor.
Best regards,
Amazon Services
