eBay asking for full tax ID number

[Roy3805]

My payouts were on hold pending performance review 2 days ago. And now this.

ebay
We need your tax identification number
Hi Seller
Because your payouts for the current year exceed $600, we're required to generate your Form 1099-K to comply with tax requirements. To generate this form for state and federal authorities, we need the full 9 digits of your Social Security Number or Individual Taxpayer Identification Number (ITIN). Just like all the personal information in your eBay account, your Social Security Number and ITIN are stored securely.
Update account details

[TGMT²]

Originally Posted by Roy3805

Because your payouts for the current year exceed $600, we're required to generate your Form 1099-K to comply with tax requirements.

Curious, what state is your account in?

[Roy3805]

Originally Posted by TGMT²

Curious, what state is your account in?

United States - Mississippi

[TGMT²]

Originally Posted by Roy3805

United States - Mississippi

Yup, one of the states that has a low tax threshold. You should have picked another state not on this list:

MA: $600 and 0 Transactions
DC: $600 and 0 Transactions
MS: $600 and 0 Transactions
VT: $600 and 0 Transactions
NJ: $1,000 and 0 Transactions
AR: $2,500 and 0 Transactions
IL: $1,000 and 4 Transactions (starting TY2020)
VA: $600 and 0 Transactions

https://sovos.com/blog/trr/virginia-...organizations/

[phaz0rz]

^^Thanks for that. I guess it's only relevant info for a few more weeks but I've been curious about what states have lower thresholds + now I see where the federal government got the idea. :/

[Gotya108]

State doesn't matter guys. Ebay USA is a national platform that allows sellers to accept payments nationally/internationally. At $600 no matter if you said your location was Mississippi or Alaska they need to confirm that the tax information they have on file can be used to submit a correct 1099-K to the IRS. A rejected 1099-K equals between a $50 and $570 fine. If your ITIN info doesn't math what's in the IRS database its going to cause the 1099-K to be rejected. If you are sole prop or single member LLC who opened a business account as a corporation and used a legit EIN for reporting as opposed to your SSN that will also cause the filing to be rejected...

[agent006140]

OP flag is not USA.

[phaz0rz]

Originally Posted by Gotya108

State doesn't matter guys. Ebay USA is a national platform that allows sellers to accept payments nationally/internationally. At $600 no matter if you said your location was Mississippi or Alaska they need to confirm that the tax information they have on file can be used to submit a correct 1099-K to the IRS. A rejected 1099-K equals between a $50 and $570 fine. If your ITIN info doesn't math what's in the IRS database its going to cause the 1099-K to be rejected. If you are sole prop or single member LLC who opened a business account as a corporation and used a legit EIN for reporting as opposed to your SSN that will also cause the filing to be rejected...

Pointless word salad. You're talking about the new rules, not the old rules.

Before 2022, only the states TGMT mentioned had lower thresholds for 1099k's. Starting next year it's going to be nationwide.

[Roy3805]

Does this mean stealth is over? If someone is using a friends or family member eBay account could this cause trouble?

[Gotya108]

Originally Posted by phaz0rz

Pointless word salad. You're talking about the new rules, not the old rules.

Before 2022, only the states TGMT mentioned had lower thresholds for 1099k's. Starting next year it's going to be nationwide.

And the OP was asking about the new rules not the old rules That`s and the post pointed to the old rules which are now obsolete on every major platform and mean nothing to sellers moving forward. The IRS threshold is $600 which means every platform is going to require you submit info up front so they are not losing money having 1099-K`s rejected by the IRS. That means all new sellers are going to have to provide verifiable info upfront and all old sellers with alerts sitting on their accounts are going to get hit by the bots and will be sent TIN and document request. So you just attempted to contradict what I said by confirming what I said? Interesting...

[Gotya108]

Originally Posted by Roy3805

Does this mean stealth is over? If someone is using a friends or family member eBay account could this cause trouble?

In terms of using a family members name and SSN no that`s fine as long as they know what`s going on and what`s going to be reflected on their tax returns. It simply means stealth in the way of making burner accounts with a ⊗⊗⊗⊗ SSN, ⊗⊗⊗⊗ name etc is going to be far more difficult as sellers are no longer going to be able to run off $18K in sales and then rotate to a different account or split sales between multiple accounts. Splitting sales between accounts and listing in multiple categories with different accounts is still possible and not against the TOS of most marketplaces, its just going to have to be done formally.

[seller0]

so once it reaches 600 it will be on hold? no change with account opening? ebay works different then most processors.

[rsot]

Originally Posted by Gotya108

Splitting sales between accounts and listing in multiple categories with different accounts is still possible and not against the TOS of most marketplaces, its just going to have to be done formally.

Done formally indeed.

[Gotya108]

Originally Posted by seller0

so once it reaches 600 it will be on hold? no change with account opening? ebay works different then most processors.

Not necessarily. Right now the best practice (from the platform perspective) is to do all the verification upfront on new accounts and either limit the account before the first listing or sale for a marketplace like Ebay that provides integrated payment processing. Nothing about the back end that we see as a platform changes, the only difference is that in years past if an account had an alert which would cause a 1900-K rejection, it was our choice on how and when to act upon the alert and you had 200/20K worth of rope. Now with the $600 reporting threshold if a seller list, sales and receives payment for a $60 item he/she is already trending toward reporting. What you guys are seeing on Ebay now is; old accounts with alerts are getting swept and new accounts are going to just be restricted from day one or sale one until the tax info can be verified and as long as the tax info can be verified then you will be good to go...

[seller0]

new accounts are going to just be restricted from day one or sale one until the tax info can be verified is just your speculation you don't know that. old rools are 20k or so many sales and you get that letter. My opinion they will only send you the letter if you get to 600.

[seller0]

We just don't know. ebay is doing allot or random things and can do something crazy. One thing I know is eBay will never be like other payment processors and wont follow some rules. If they can hold illegally people money they are capable of anything.

[Gotya108]

Originally Posted by seller0

new accounts are going to just be restricted from day one or sale one until the tax info can be verified is just your speculation you don't know that. old rools are 20k or so many sales and you get that letter. My opinion they will only send you the letter if you get to 600.

Its not speculation its literally how the system works going on with every marketplace that uses Adyen. I own a CRM platform that offers invoice and payment processing, we use a similar solution to Adyen. I'm not just pulling s**t out of the sky here. If anything is off about your account in terms of TIN and reporting that could cause the 1099 to be rejected there's an alert on the back end the second the seller finishes registration. With the reporting threshold being so low there's no advantage to the platform of letting the alert sit there for $550 worth of sales. The best and most risk adverse solution for platforms and marketplaces to move forward is just to take care of this during initial registration for new accounts and sweep old accounts with alerts. Easy way to figure this out. Go open an account with inaccurate tax reporting info and see what's what. Simple.

[yankee]

Originally Posted by seller0

If they can hold illegally people money they are capable of anything.

They don't illegally do anything LOL You agreed to their TOS and they are currently meeting the new IRS laws.

It isnt just ebay, ALL my stripe accounts needed updated TIN numbers, some of my paypal accounts, RVshare, Outdoorsy(both use Stripe) are saying they will be holding 24% of receivables until you re enter TIN number, Discover Card is asking for IRS authorization, Savings accounts be closed or converted to Checking accounts, WF is closing personal lines of credit all over these new laws.

We have a really good idea what happens on January first seeing as the deadline is in two days for updates on most all payment processors.

[seller0]

Originally Posted by Gotya108

Its not speculation its literally how the system works going on with every marketplace that uses Adyen. I own a CRM platform that offers invoice and payment processing, we use a similar solution to Adyen. I'm not just pulling s**t out of the sky here. If anything is off about your account in terms of TIN and reporting that could cause the 1099 to be rejected there's an alert on the back end the second the seller finishes registration. With the reporting threshold being so low there's no advantage to the platform of letting the alert sit there for $550 worth of sales. The best and most risk adverse solution for platforms and marketplaces to move forward is just to take care of this during initial registration for new accounts and sweep old accounts with alerts. Easy way to figure this out. Go open an account with inaccurate tax reporting info and see what's what. Simple.

At the moment everything works fine. What are you talking about?

[Gotya108]

Originally Posted by seller0

At the moment everything works fine. What are you talking about?

So you created a new seller account, made a sale and received a payout that fast? Stop trying to be right and be accurate. This is easy to prove. Go make an account with off TIN info and see what the result is. Until you do that, you don`t have a reply worth addressing.

[Roy3805]

If your SSN is off they are definitely going to ask for ID

[seller0]

Originally Posted by Gotya108

So you created a new seller account, made a sale and received a payout that fast? Stop trying to be right and be accurate. This is easy to prove. Go make an account with off TIN info and see what the result is. Until you do that, you don`t have a reply worth addressing.

Im telling you Stealth is working for now if you know what triggers the system and how to hack it. I'm not going to give out the secrets here because I know they read it and change it if you do. Jan 1 they are changing allot with new rules and new loop holes because of this new $600 bill