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The email we have all been waiting for...
 

This is a first for me... not sure if anyone else already got it - no surprise but we can now submit our info.


Hello ********,

Beginning with the 2011 tax year, new IRS regulations require Amazon to file a Form 1099-K for sellers who exceed $20,000 in unadjusted gross sales and 200 transactions in a calendar year. To assist in complying with these regulations, we are requiring sellers who exceed 50 transactions in a calendar year, regardless of monetary threshold, to provide their tax identity.

Please provide your tax identity to Amazon as soon as possible to prevent disruption to your seller account. Note that if the required information is not provided to Amazon by December 26, 2011, your Amazon selling privileges will be suspended until you provide the information.

You can enter your tax information in your seller account, using a short interview process that can be accessed from the Settings > Account Info > Legal entity section.

For additional information about entering your tax information, see answers to frequently asked questions:

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. 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

I got this too just moments ago.

I don't know what to do now, Even if I get a business EIN number, the Amazon questionnaire will ask for your residence address so they can generate you a W9 form.

Any ideas guys ?

I will try with p_hony info and see what happens.

I think W-8BEN Certificate of Foreign Status instead of W9 may help us if we claim to be non-US Citizens.

Will keep you updated.

I have not received any emails as of yet.

This is crap....
we are requiring sellers who exceed 50 transactions in a calendar year, regardless of monetary threshold, to provide their tax identity.

I agree - wasnt planning on having any issues with 2 other accounts that I kept under 20K/200.

Guess that just went out the window.

I got this today as well, and I was going to create a thread. Here is my question concerns..... I have one amazon seller account with 80-100k by the end of the year. They want an EIN by Dec. 26th. Would it be smarter to call quits on this account and start a new one up, or just pay taxes and keep the account. I say this because if for any reason the account goes down a month or so after i pay taxes, I will be pissed because it wont be a long term account and I will have to start over again anyways. Another issue I have is someone above said you need to provide residence proof in the questionnaire with filing Tax Number. Does this mean if I enter my EIN, I will also have enter REAL address, so they can send the tax information? Because I have a feeling if I enter my real address it would get link...which means I would need another UPS Box? Aghhh..

Any confirmed truth to this? I am using a general UPS box address, so I would have to enter my real address, which would lead to linking?

as Far as I Know If i keep under the $20,000 or 200 transaction ,amazon will not report 1099 form to IRS,
So ,does that means if I sell under $20,000 or 200 transaction,as long as IRS does not verify it ,then amazon has no way to validate the information I provided?
th

20/20,000 is for ebay/paypal not amazon.

Incorrect....
The 200/20,000 is the IRS requirement.

the quota is TWENTY now? When did that change :doh:

My info says 200/$20,000.

Let's keep things accurate eh.

WRONG, dont add to a forum if you dont know what your talking about

So can anyone actually confirm what happens when they ask you to enter your EIN. Since I ship from a ghost location, would I have to get a new UPS Box, because entering my legit address would like me?

They may give you the option of getting your 1099k electronically. Yes?

I hadnt thought about that yet but it seems like it would work...

Might start another thread for "Your experience providing IRS requirements" so we can hopefully get a better understanding of the process and learn from each other.

I dont know about you guys, but I wont be sending mine in until close to the 26th so we can get holiday sales in for sure.

I know that paypal is able to verify your SSN on their website,I assume that amazon will be able to do so as well ,
but in case of EIN, I was wondering that if amazon has the ability to validate it ?

EIN or SSN will work. As for the comment above stealth on amazon is NOT over. You would just have to keep creating accounts if you dont enter your EIN or SSN. I have an established stealth account, but it looks like I will have to give up my EIN to them and start paying taxes with my amazon account.

They can verify that the EIN# matches up to the business name it is registered to. The IRS can not give out any other information than that. So if you supply a legit EIN# and legal business name then you are good to go.

Yes they Will,,,the information is on the Same Database as the SSN's

Hmm, Nothing for UK Amazon yet thankfully

Good for Roadkill
 

For the ones as me thinking about using or getting a good Tax Identification Number with our real info, is good as long as you pay your share to Uncle Sam. I just made the math on an estimated $100,000 for 2010 and I will be liable for $16,000 to the IRS.

I do not have a problem with that, if both Amazon and IRS will let me sell as much as I want I will pay my share.

The good part out of this? Amazon is very strict with sellers and we know that. For 2011 will be even less sellers due to this regulation; long life is ahead to all who pass it.

Keep up with the updates.

This is bad. I have 8 amazon accounts running now. No way will I be able to get 8 different EIN #'s. I will have to try something different.

looks like we have to open up many accounts and spread inventory ..

what is the transactions is that deposits or 50 sales??

This is the dumbest idea ever. Stealth doesnt make ⊗⊗⊗⊗ in all cases. If you use some else info, then they are responsible for everything you do, and if they end up getting in trouble with law/government its your ass for fraud. With stealth everything is real except for the name.

Here is the only option for amazon and ebay these days......

1. Turn and burn accounts are not longer possible (never a fan anyways)

2. Creating multiple accounts will only get you so far now, since once you hit the limit you MUST provide SSN or EIN (many EINs are not a good idea)
---In my case selling 2,000-4,000 items week on amazon would not work for this, because I would be creating new accounts weekly, which would be a pain in the ass, plus it would be a new seller account weekly so people would be hesitant to buy, and you would be the 90 day hold on your money constantly.

3. Creating an account to last is your only option, which means you need an EIN or SSN that wont link, and you need to start paying taxes.

4. The more you build up a reputable and solid selling account, the better off you will be in the long run, since they are constantly limiting the choices you have to get around things.

Thats horrible math, because it is way higher than that. I am in the same exact situation as you. I am going to provide my EIN to them after the holiday rush, and I am sure it will be you, me and about 75% less sellers. YEAH!!!!!
Tax Brackets (Federal Income Tax Rates) 2000 through 2011

According to my EIN info they gave me when I applied - you can only have one EIN no matter how many businesses you have. This applies only to a Sole Proprietorship.

LLC/S-CORP might be alternate options.

^^^^^^^^^^
Correct.
LLC can have more than 1

Hmm that's weird I have multiple accounts open and all have passed those limits stated above long time ago and none have received any type of tax request.

will have to stay under the radar when we hit the magic number jump ship...

Hi I am new in the forums. So Hi everyone!!!!!
I have received the same e-mail. Only for Pro-seller account not for individual.
I wonder if the regulations for individual accounts are the same.

Any ideas?

Damn so I need two EINs for my accounts damn u amazon

Wow, so many of you people have no idea what your doing and are going to run into major issues.....

when I apply for the EIN on IRS website, which address should I use as my business address? does it needs to be as same as the one I have on file on amazon when I put the tax information on amazon?
since I have the ⊗⊗⊗⊗ address on amazon ,so if I use this ⊗⊗⊗⊗ address to get my EIN number, Then if anything happens between me and IRS, and IRS send me the documment ,then i can not receive it ,,
but if I use an address that I can receive the mail ,then this address will not match the address I Put on amazon(the address on amazon will be showing on the 1099 form amazon will be sending to IRS),will it raise the flag on IRS side?
any suggestion will be highly appreciated ,
sincerely

thanks, i meant to say 20/2000 but hwga set me straight :)

irs.gov and china:doh:

couldn't we apply for EIN numbers with stealth address. who cares where the mail goes. unless it has your ssn number on it any way your cc and bank address and all info would be stealth for amz ebay etc all you may need is the ein.. just trying to figure out a work around ..

When applying for a EIN number, we have to use a real address we can access because they will mail the real number there. Not by email. (please correct me if I am wrong, please tell me I am wrong anyone...)

When applying for a EIN or using a real SSN or working as LLC we MUST to file a tax return or the IRS will be after your as$.

This REAL address then will be used by Amazon to verify against the IRS. I guess at 99.9% this should be a virgin address not a banned address, otherwise we may lose one account.

Addresses and names for taxes purposes not necessarily need to match the stealth info on Amazon.

I am really working on a solution or a bypass because I have a lot of accounts.

Should you find any tips, please share and I will be glad to help in return.

No, when you apply for EIN you have to do it with the IRS.GOV, and you MUST enter a REAL SSN#. It is like an application process. If you dont enter you real SNN they will refuse you, and if you enter someones other than yours, than you will run into legal issues guaranteed. Think of it just like a credit card application.

You are correct for the most part. As far as the address goes, it looks like many of us using stealth addresses will have to go get another fresh UPS Box for mailing purposes.