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Amazon Stealth and $20,000 limit question?
 

I have an Amazon Stealth account which is fast approaching the $20,000 dollars pay taxes cut off. I sent in the stealth info on it last fall, and apparently they never sent it into the IRS. The account was well under the limit, but this year I've been selling full bore on it.
Question is: should I ditch the account before the 20,000 limit or can I continued to sell over the limit? I would ditch it later in the year. Hate to lose this baby, as its a big money maker and has a 100 % feedback. I'm wondering if the IRS, along with Amazon, would try to track me or would Amazon just suspend me? I could easy sell pass $50,000 on this account. Has anyone done this....?Any advice would be greatly appreciated. Thanks in advance for any help......

wouldn't be hard for the IRS to track you. All they would have to do is get the bank account information from Amazon, then get all your info from the bank. Then you have the US governments undivided attention. I would stop selling on that account ASAP!

If Amazon and PayPal are required to issue a 1099 when your reach the threshold why on earth would they continue to let you sell on an account without a SS#?

I wasn't paying attention to one of my eBay accounts last month and went way over ($27,000) before they shut it down! They can't issue a 1099 without a SS# though, and I highly doubt they will send a list of accounts to the IRS they failed to collect. The IRS will probably wonder why I'm paying tax on this account when PP failed to collect the required information. :doh:

Them failing to send a 1099 to the IRS doesnt have anything to do with whether you still need to file or not. what if they find out and send them to the IRS late. You dont know what kind of rules that businesses have for things like this.

We have an extension date and all other kinds of rules an things for mistakes and other filing problems. Businesses have them too.

If you dont file it and they get your SSN through your bank account (which they Can indeed when it comes to taxes,etc) then send it to the IRS late, what are you going to do then?

They will simply audit you and you will be hosed. You need to file it regardless if paypal sends it. you are really supposed to pay it on any amount you get.

The 20k threshold isnt for when you need to file the income. Its for paypal to be required to report it "as well as" yourself.

Stealth or not, you can easily still report it.

Good luck

(not legal business or tax advice, you should contact a professional for sure to get this worked out. dont rely on only posts for all your info. This is only a recommendation on what you SHOULD do in my opinion)

Just so nobody misunderstands...

If you earn profits selling merchandise, online or offline, then you owe taxes on those profits. The $20,000 that everyone keeps talking about is when the IRS requires the payor to REPORT to them. It is NOT something that triggers OWING the taxes.

If you sold $15,000 worth of merchandise, and earned $2,000 doing it, then you owe taxes on the $2,000 REGARDLESS of whether or not it is reported.

Trust me, you do NOT want to be on the business end of an IRS investigation.

Yeah, about what I thought. Time to bring up a sleeping account...thanks for the advice guys...

so what do u do tell them your selling counterfeits?

@Christopher

which year are you going to get the message to NOT sell phakes ?

You still pay taxes even with your type of merchandize.

Find a tax professional to help you.:ballchain:

I sell college text books. I never deal in any kind of ⊗⊗⊗⊗...

when someone helps me find some legit stuff to sell :D , but everyone is too selfish..enough cash to go around

While I can feel your pain sort of, you have to figure that the successful folx here do not want more competition in their niches.

As for the too selfish part...seriously??

Re: Amazon Stealth and $20,000 limit question?
 

If you happen to make decent profit as you say why not start actually paying taxes as your little business seems to have taken off.

I understand when your small time and already have a job it turns into a pain in the back side but once established pay the taxes and make the business grow with out the stress of the tax man!

And phakes your just looking to get caught if selling in large amounts.