Action Required: Please provide your Tax Identity

[incniu]

Hello from Amazon,

Due to IRS regulations, Amazon is required to file a Form 1099-K for sellers who exceed $20,000 in unadjusted gross sales and 200 transactions in a calendar year. As a result, it is Amazon’s policy for Amazon.com sellers who exceed 50 transactions in a calendar year, regardless of monetary threshold, to provide their tax identity information to Amazon. To ensure compliance, please provide your tax identity information within 30 days from the date of this e-mail. If you have not provided valid tax identity information by that time, your seller account will be considered in violation of our Amazon.com selling policies.


It seems AMAZON is serious this time.

[Gamefreak]

you are late to the party. this is last years news they will let you continue to sell without it

[renzini]

I sold around 160 And didn't receive Any message from amazon about providing TAX ID.
Can I sell over 200 items and Amazon will not ask me for that?

[helpme1]

Originally Posted by Gamefreak

you are late to the party. this is last years news they will let you continue to sell without it

Hey Gamefreak, I got that same message yesterday on a couple of accounts. Have you gotten this message this year on any of your accounts and if so what happens after 30 days of not supplying this as they state in the email we need to supply within 30 days or else?

[ovidiu]

This is a new message (Gamefreak). I got it on the 10th too. I am assuming that by mid-June, those who refuse to supply SSN/EIN will be suspended. I am assuming because Amazon didn't say that explicitly. I will be taking up a friend's offer in the beginning of June, and setting up an umbrella LLC for all my operations thru her CPA.

[helpme1]

Originally Posted by ovidiu

This is a new message (Gamefreak). I got it on the 10th too. I am assuming that by mid-June, those who refuse to supply SSN/EIN will be suspended. I am assuming because Amazon didn't say that explicitly. I will be taking up a friend's offer in the beginning of June, and setting up an umbrella LLC for all my operations thru her CPA.

Ovidui, what is a umbrella llc and how does that work?

[ovidiu]

Ovidui, what is a umbrella llc and how does that work?

I don't think there is a type of LLC actually called anything like that. What I mean is that I run several different businesses, and I am going to set up a single LLC to oversee all of them (Paypal/eBay, Amazon, and two other side ventures I run).

[Recherché]

Originally Posted by ovidiu

This is a new message (Gamefreak). I got it on the 10th too. I am assuming that by mid-June, those who refuse to supply SSN/EIN will be suspended. I am assuming because Amazon didn't say that explicitly. I will be taking up a friend's offer in the beginning of June, and setting up an umbrella LLC for all my operations thru her CPA.

Query if I may ovidiu: setting up an umbrella through LLC, would you not need a different EIN for each business? I have 7 amazon accounts, so the only real option for me is to incorporate some and let others get suspended. Not sure how IRS would look getting seven different EIN's.

[incniu]

What is the best way to do bookkeeping after setting up it as sole proprietorship

[ovidiu]

Query if I may ovidiu: setting up an umbrella through LLC, would you not need a different EIN for each business? I have 7 amazon accounts, so the only real option for me is to incorporate some and let others get suspended. Not sure how IRS would look getting seven different EIN's.

Well I only have one Amazon account, and one Paypal account, so no, I wouldn't need a lot of EIN's. I will set up a single LLC with a nice generic name that controls all the small businesses underneath it. Some of these businesses will only be doing purchasing for sales on Amazon and eBay, so won't even need an EIN for those. One EIN should be fine for everything.

If you are incorporating several different Amazon accounts, you are in it for the long haul. Forget about risky behavior or burning an account.

[ovidiu]

Example. I know a guy who, let's sale his LLC is called generic LLC. He does business under several different business names. All these businesses are in the end tied to generic LLC, which handles all accounting and paperwork. So it's kind of like having one corporation control several different brands.

[incniu]

Bank will be OK with money coming from different business names?

Originally Posted by ovidiu

Example. I know a guy who, let's sale his LLC is called generic LLC. He does business under several different business names. All these businesses are in the end tied to generic LLC, which handles all accounting and paperwork. So it's kind of like having one corporation control several different brands.

[ovidiu]

Money all comes in under your LLC name, you create a bank account using your new EIN and business info. Problem solved and keeps accounting easy.

[Gamefreak]

Ive been seeing that same message for 4 months now.. still selling


but how do you provide valid EIN for all those DBAs. That is the accounting part keeping me from having a lot of amazon accounts as I see trouble for a lot of us who does that and you will be making a ton of cash and your expenses will pretty much remain the same.

Also bookeeping for each account needs to be more thorough meaning you would need to keep a list of how many items you sell on said account, how much you purchased that item for and all the other things which overly complicates things should you choose to be legit on all those accounts.

Amazon wont allow you to provide the same EIN for all those accounts ( at least I dont think they would ) and they certainly wont allow you to open a second account to sell the same items ( I was denied last week when I ask ) so yeah..

[Recherché]

Originally Posted by Gamefreak

Ive been seeing that same message for 4 months now.. still selling


but how do you provide valid EIN for all those DBAs. That is the accounting part keeping me from having a lot of amazon accounts as I see trouble for a lot of us who does that and you will be making a ton of cash and your expenses will pretty much remain the same.

Also bookeeping for each account needs to be more thorough meaning you would need to keep a list of how many items you sell on said account, how much you purchased that item for and all the other things which overly complicates things should you choose to be legit on all those accounts.

Amazon wont allow you to provide the same EIN for all those accounts ( at least I dont think they would ) and they certainly wont allow you to open a second account to sell the same items ( I was denied last week when I ask ) so yeah..

Am going through the very same issues Gamefreak. I spoke to someone on legalzoom and was told I can only have one DBA with it's own EIN #. All other DBA's can only be acquired through purchasing corporation/LLC/sole/partnership, ect. Only then it would be listed under your EIN # for that entity, but as you stated, you can only list one EIN # on Amazon.

The only way I see getting around this is getting a different entity for each account and coming up with creative ways of rearranging name so they won't all be the same but yet still accepted by IRS. It would be more expensive but those loses can easily be made up.

I agree wholeheartedly about how much more difficult bookkeeping would be. I'm having some REALLY serious issues now keeping tabs of what I sell, how much for, profits, taxes, etc. Now I will have to keep tabs on EACH individual account/company? If I don't hire someone to do this exclusively for me...well it would be more complicated.

[Gamefreak]

Recherche your last sentence is the EXACT problem I see which if you are making good money on 1 account you can surely expect that to double with a second account. Now seeing that you buy stuff for everything together that would be a hassle for bookkeeping.

My accountant doesnt even want to do it for me as shes charging me $125 an hour to keep my paper work straight should the IRS come knocking...

Im still trying to figure out how to get around all these things to minimize my audit risk...

[Hercules]

There is nothing to worry about at all. If PP sends gross sales to the IR S let's say 100,000 bucks gross sales that's the starting figure, then comes all the cost's:
100,000-
60,000-inventory cost ( this is where you got them, CASH inventory from tag sales etc...)
You make a book full of cash inventory buys, dates, amounts ( gee I lost money on those sales, darn!) get it? Just make a book when and if they inquire.

20,000-losses, Ebay/PP fee's, shipping, cars, fuel, rent, etc...

Gee I only cleared 20 grand last year..oh well I'll pay my taxes on that!

But if you show a 2500 dollar mortgage, 1500 dollar car lease, credit card balances of 30 grand then you're in trouble.

I try to pay as much as possible with stealth PP's and cash all over town.

They go after the big fish not the small guys...that's how they get promotions.

[biggunn]

Best to just be honest and pay all your taxes that are due. Just open some LLC's with EIN's if you need to be stealth.

[anon5o1]

Originally Posted by biggunn

Best to just be honest and pay all your taxes that are due. Just open some LLC's with EIN's if you need to be stealth.

Agreed. It will just screw you over in the long run.

For each LLC created we are allowed a separate EIN number for that entity correct? I understand that the LLC return is sole proprietor, corporation, or partnership. However, my question is if I have (3) LLC's and the tax return is under sole proprietor can I have an EIN number for each LLC? From my understanding last time talking to the IRS, I cannot register more than (1) EIN number under sole proprietorship.

I am finding a suitable way to create several stealth AZ accounts without having other people to file the tax return under their EIN number.

[MMG]

Couldnt you just get an LLC, and file several DBA's under the LLC? You would still be able to get an EIN for each

[Recherché]

Originally Posted by MMG

Couldnt you just get an LLC, and file several DBA's under the LLC? You would still be able to get an EIN for each

No. The DBA's you file under LLC can only have the EIN # associated with that DBA. A spokesman from Legalzoom I spoke to said you can only have one separate DBA EIN#. All the rest has to be different LLC or DBA's underneath LLC.

[anon5o1]

Isn't there a series of questions on ownership of the EIN# upon submission?