1099k issued on my account but its my friend tax info. How do I navigate this issue?

[scubadiver]

This is a partial ebay/amazon site selling question and tax question.

A couple years ago I lost my selling privileged for ebay and amazon because I did not have access to the internet for two weeks and was forced to ship a lot of orders late and also had to refund a lot of buyers. Because of this mistake I couldn't sell on amazon or ebay, they disabled my selling privileges shortly after this.

ebay and amazon were my income source so I was very distraught and the person I was dating at the time offered to let me use their info like name and tax id info to be able to continue to sell and make a living.

Fast forward a couple years later and both accounts are strong, they both have nearly 100% feedback and the buyers are very satisfied.

I was contacted by my friend who helped me out with letting me use their info to continue selling last night. They told me they received a notice from the IRS requesting they pay tax on the revenue reported on the 1099K forms that paypal and amazon sent to the IRS in 2014 but which were really my selling activity.

Now I don't know what to do because this friend of mine was helping me out and I don't want them to be responsible for this debt.

How do I navigate this issue? Do I hire an accountant to work directly with my friend and the IRS to sort this out so the taxs are paid or can I have PayPal and Amazon simply issue a corrected 1099K with my tax id info instead? Also if I do the later they may disable my selling privileges. Which would be bad.

I could obtain a new EIN /Tax ID number and have the corrected 1099K's have this info instead of my personal SS#

I would like some direction here because I want to do the right thing all around between not letting my friend be responsible for this tax liability that I caused and making sure I can continue to sell on ebay and amazon. In the last few weeks I have been in the process of forming a company and obtaining a EIN anyway so I could start selling under the company I formed.

Any guidance or pointing out if anyone else has experienced this would be appreciated!

[ninja83]

I am not in your country but I am strongly recommend to pay taxes, furthermore this happebed with your friend. Do not lose your friend. He helped you recover in a difficult situation. Do not let him be in the same position.

[phaz0rz]

^^ lol, wtf @ that guy

@OP - Lots of people here have been in the same situation. I recommend going to a tax preparer with your ex and explaining the situation, then reimbursing her for the taxes due. I don't think you would be able to change the Tax ID an a 1099 sent out in 2014. So I think paying her would be your only option.

I just hope you kept some kind of record of your business expenses - miles, postage, etc for that year. If you don't have any deductions you'll be required to pay taxes on your entire sales amount, which depending on how much you've sold, can go into the tens of thousands of dollars.

Good luck! Definitely start using EIN's if you plan to continue selling!

[Bernie Sanders]

wait for bernie or trump to be elected so they can abolish IRS

[jonniex]

Originally Posted by phaz0rz

^^ lol, wtf @ that guy

@OP - Lots of people here have been in the same situation. I recommend going to a tax preparer with your ex and explaining the situation, then reimbursing her for the taxes due. I don't think you would be able to change the Tax ID an a 1099 sent out in 2014. So I think paying her would be your only option.

I just hope you kept some kind of record of your business expenses - miles, postage, etc for that year. If you don't have any deductions you'll be required to pay taxes on your entire sales amount, which depending on how much you've sold, can go into the tens of thousands of dollars.

Good luck! Definitely start using EIN's if you plan to continue selling!

Thanks, I do have records of everything thankfully. I am going to attempt to get amazon and paypal to update the TAXID info to a Business EIN and reissue the 1099Ks.. Not sure if they will ammend them.. otherwise I must pay the taxes directly.

Thoughts on changing the tax id info for paypal and amazon?

[jonniex]

Originally Posted by ninja83

I am not in your country but I am strongly recommend to pay taxes, furthermore this happened with your friend. Do not lose your friend. He helped you recover in a difficult situation. Do not let him be in the same position.

Thanks I never intended to not live up to my responsibility but thanks for the input.

[phaz0rz]

Originally Posted by jonniex

Thanks, I do have records of everything thankfully. I am going to attempt to get amazon and paypal to update the TAXID info to a Business EIN and reissue the 1099Ks.. Not sure if they will ammend them.. otherwise I must pay the taxes directly.

Thoughts on changing the tax id info for paypal and amazon?

I don't know if either of them would be willing to resubmit your 1099's.. It could seem suspicious to them

But it's worth a shot..

[yankee]

Originally Posted by Bernie Sanders

wait for bernie or trump to be elected so they can abolish IRS

As crazy as it may sound, I am waiting for the election to determine how to handle some IRS things that I feel may change quickly HAHA

Interesting perspective

[vogeltron]

Not only are you on the hook for 2014 but 2015 now as well. Hope he doesn't report you for Identity theft. This 200k/200 transaction IRS law has been in act since 2010. I have zero sympathy for morons.

If you have any balls you need to call up the IRS personally and cop to it.

Also changing the The Tax ID to an EIN under your name would be nice. But if you did not claim the income then it would still be Tax Evasion on top of Identity theft.

[rsot]

Get the help of financial professional for filing the taxes as well

[GreenBean]

Originally Posted by jonniex

Thanks I never intended to not live up to my responsibility but thanks for the input.

Are you scubadiver?
If so, please send aspkin a pm to sort your account.

[Rano]

I have a stealth ebay, under the name that doesn't exist, does ebay send tax form? If so, how? If the name is stealth, and how much $ I have to hit on ebay? For tax form?

[yankee]

Originally Posted by Rano

I have a stealth ebay, under the name that doesn't exist, does ebay send tax form? If so, how? If the name is stealth, and how much $ I have to hit on ebay? For tax form?

USA account?

If so, you will get a request for tax info and then limited if not supplied by 200 transactions and $20,000.00 in sales.