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20K and/or 200 sales TAX Question.
 

Hello Forum,

This question is probably answered before, but I would like to verify everyone's understanding.

The IRS states that ALL online merchants must report to them sales that exceeds $20,000 WITH/AND over 200 Transactions.

I've contacted Turbo Tax and they advised that merchants must report to the IRIS if one of the following two criteria is met. Therefore, if you exceeds 200 transaction but not $20,00 in sales, Paypal must report this to the IRS. VICE versa.

Is this correct?

The words of the IRS clearly states both criteria of 20K and 200 transactions must be met. But tax advisors are telling us otherwise.


If you have more information on this. Please provide some input. Thanks Brothers and sisters.

if the IRS tells you the sky is blue and I tell you the sky is green, who will you go by when tax season comes? you are answering your own question

By law you are suppose to report any income in the United States. PayPal will only file a 1099k if you meet both thresholds 200 transactions and 20k assuming you gave them a Tax ID number. You can read the rest of the board but if you get close to both those and haven't provided the information paypal will limit/suspend your account as they are required now by law to report that information.