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Tue Apr 5 2011 09:41:05

Amazon Sales Reports Not Helpful for Tax Reporting

By: Ina Steiner
Sponsored Link
Dear Ina:
Re: 1099K reporting article ("IRS Casts a Wide Net With New 1099-K Reporting Rules")

I am not surprised that Amazon has not responded regarding the 1099-k. I have had to change the way I do my bookkeeping because of this rule and Amazon has not been any help.

First of all they had a report page on the site where you could look at your monthly sales by year dating back to 2005.

In January they took that report off of the website leaving us in the dark as to how we will know what Amazon will be reporting for our monthly sales. We do not want any surprises at the end of the year. We had to actually go in and do our sales by day, which was a lot of work.

They have given us back "a" report but it only gives the monthly sales, of which does not add up to what we have.

Second the report does not show how much of our reported sales is shipping. How much fees the fees were by month or anything other than what they are "claiming" are our sales (including shipping).

In contacting them, their reply was to see my tax man. I am an accountant so I do not need to see a tax man. They told me in reply that they are trying to figure out now how they are going to do this but will not give us any reports other than the one report that tells us a monthly total.

I really would like them to get their act together. Since the totals do not match day by day totals, we really need to see what they plan to report.
Signed,
Amazon seller

Editor's note: See today's update to this story with Amazon's response to the questions raised in the initial news report.




Comments (14) | Permalink
Readers Comments

Amazon Sales Reports Not Helpful for Tax Reporting   Amazon Sales Reports Not Helpful for Tax Reporting
by: Scotty
       
Tue Apr 5 11:01:10 2011
Ebay does the same thing....they don't even segment any tax collected....it's just in the gross montly intake report.
I track all expenses and have created a spreadsheet for this purpose outlining everything and deducting everything allowed that I can take off that top number.  I give this to my accountant every quarter (although I am doing more work on this than he is....).
The scary part is the 1099 reporting issue that is still hanging out there unresolved.....I can't believe the gov't is going to let this go through.  I have no idea how I will handle this nor does my accountant.  He keeps telling me he attends some sort of a montly ''accountant'' seminar and they are all really not preparing for this as they all think it will be repealed.  What if it isn't?
Amazon Sales Reports Not Helpful for Tax Reporting   Amazon Sales Reports Not Helpful for Tax Reporting
by: anyone out there
       
Tue Apr 5 12:07:52 2011
I find it hard to feel sorry for these sellers. If you sell anywhere YOU ARE SUPPOSE TO REPORT THE INCOME TO THE IRS.

If you don't have correct records its your fault not Ebay or Amazons.

All those tax cheaters will now have to own up to the income.

Going to be interesting when all of a sudden you are reporting huge amounts of income. Da Ya Think It Will Trigger An Audit.
Amazon Sales Reports Not Helpful for Tax Reporting   Amazon Sales Reports Not Helpful for Tax Reporting
by: zvicki
       
Tue Apr 5 13:22:17 2011
I guess I'm old fashioned. I keep a hard copy of all transactions and expenses for the whole year. I don't trust any of the Online community to accuratly provide my actual income. It's too important not to keep track of.
Amazon Sales Reports Not Helpful for Tax Reporting   Amazon Sales Reports Not Helpful for Tax Reporting
by: The Little Guy
       Web Site
Tue Apr 5 16:26:50 2011
They should start the audits with Amazon.com.  This is the most insidious, lying, behind-the-back-stabbing company put on earth.  They used their marketplace sellers like cattle by leading them on.  They then slaughtered thousands of viable companies and small businesses with their amazon-centric metrics and unfair algorithms.  Now they are arm bending the sellers once again to get them to join their fullfillment-by-amazon scam.  Sellers need to support Ebay as bad as they are.  Move your products to the smaller sites or at least give them the better pricing and lets wipe out this brutish company before they wipe us out.  This is worst then Walmart.  If you want a future for your kids you'd better start supporting the smaller companies.

They ( control everything already on the internet.  Here is a list of some companies that this monopoly owns:

BOOKPAGES
ABC
IMBD
SAGE ENTERPRISES
JUNGLEE
DRUGSTORE.COM
GEOWORKS
PETS.COM
BIB
LIOFIND
ALEXA
INTERNET
ACCEPT.COM
HOMEGROCER.COM
GEAR.COM
TOOL CRIB OF THE NORTH
CONVERGENCE CORP.
WINESHOPPER.COM
EGGHEAD
BOOKSURGE.COM
FILLZ
ABEBO
OKS
JUSTBOOKS

For
a more complete list go to: http://www.seobythesea.com/?p=342 but hurry before it disappears like everything else negative about them.

To all the mom and pop stores out there:  I remember once when there were book stores, toy stores,  hardware stores, record stores, etc. on every street in America.  Over 50% of the middle class was self employed.  In the eighties you could see the big sell out occurring as the large-box stores started to encroach on all the main streets.  Well, here we are thirty years later and the newly found main street of the internet is now history.  You may ask: Why is this happening?   Well, it’s simple.  Our government, starting with the federal trade commission does not enforce the laws.  Anti-trust is running rampant.  The Sherman Act and Clayton Act may as well not even exist.  Small sellers are out priced out by scams like the back-end money in many businesses.  The distribution chain is a joke.  Amazon.com sells books, distributes for small publishers (fulfillment-by-amazon scam), and now they publish books with their Kindle.  They are also the largest marketplace in the world.  In other words no stone has been left unturned.  The chain is complete controlled in the book business.  Ask Borders.  They even own the fourth dimension of the chain which is the marketplace.  We are forced to continue to use them or else it’s suicide for us.

I have learned much on this site.  Auctionbytes is one of the few places where we can find honest reporting and I thank Ina for this possibility.

I hope some of you will join me in supporting the “little guy” cause he’s just bout done…

Yours,

The Little Guy



Amazon Sales Reports Not Helpful for Tax Reporting   Amazon Sales Reports Not Helpful for Tax Reporting
by: Missing the Point
       
Tue Apr 5 18:17:25 2011
It doesn't matter what your sales were or how much you collected for shipping, because you are not the seller of record. Amazon is.

What matters is how much Amazon pays you every two weeks. THAT is your income.

Anything you paid for postage is a deductible expense. Amazon has no idea what you paid for shipping, only what you collected from the buyer for shipping. Every penny you make from Amazon is income. And that isn't your sales, but how much Amazon pays you.
Amazon Sales Reports Not Helpful for Tax Reporting   Amazon Sales Reports Not Helpful for Tax Reporting
by: Simple Math
       
Tue Apr 5 18:22:39 2011
"In January they took that report off of the website leaving us in the dark as to how we will know what Amazon will be reporting for our monthly sales. We do not want any surprises at the end of the year. We had to actually go in and do our sales by day, which was a lot of work."

And a total waste of time. If you want no surprises, then simply add up the deposits Amazon pushed to your bank account every other Wednesday. This is your income. Now calculate how much you paid for postage in total. This is an expense. You are not the seller, Amazon is. The sales are not yours, they are Amazons. Amazon does not report your sales - they report how much they paid you. The sales are theirs, not yours.
Amazon Sales Reports Not Helpful for Tax Reporting   Amazon Sales Reports Not Helpful for Tax Reporting
by: Yep
       
Tue Apr 5 19:50:05 2011
Total sales includes price plus shipping. Its called total revenue.  Then you subtract your inventory cost, fees, shipping to get profit.
You could have an item that cost you $50. You sell it for $40 plus $8 shipping. Your fees were $9 and cost to  ship was $10. Your profit would be -$
I take all my sales from PayPal less inventory cost. The subtract PayPal, Ebay Fees, Shipping fees and resonable shipping supplies.
Amazon Sales Reports Not Helpful for Tax Reporting   Amazon Sales Reports Not Helpful for Tax Reporting
by: Ethical Seller
       
Tue Apr 5 19:56:30 2011
To all the sellers who have an issue or don't know how to report or track. If you have not been reporting your online sales because its a hobby. If there income, its has to be reported. The sellers who have never been reporting their income and wham they show $40,000 in sales, its going to raise a red flag and the IRS will be curious why you haven't reported before..
Amazon Sales Reports Not Helpful for Tax Reporting   Amazon Sales Reports Not Helpful for Tax Reporting
by: JoyfulA
       
Wed Apr 6 09:38:18 2011
As Missing the Point wrote, add up what Amazon pays you and subtract shipping costs and other expenses. That's what the IRS wants to know.
Amazon Sales Reports Not Helpful for Tax Reporting   Amazon Sales Reports Not Helpful for Tax Reporting
by: JIM
       
Wed Apr 6 22:47:31 2011
Keep in mind, that you can report business income as either a hobby or a business.  The advantage of reporting as a business is that you can deduct losses from your income.  The advantage of reporting as a hobby is that you don't have to pay self employment taxes.  

Amazon Sales Reports Not Helpful for Tax Reporting   Amazon Sales Reports Not Helpful for Tax Reporting
by: Moonwishes
       Web Site
Thu Apr 7 10:17:32 2011
AM I missing something somewhere? An accountant is whining because Amazon doesn't keep track of his sales for him? Whatever has happened to personal/business responsibility? Since the beginning of us selling on line, I have kept my own spreadsheets including what we received from Amazon or ebay or PP or GCO or whatever the case may be and used that documentation to do our taxes with. It is part of bookkeeping. Period. The government wouldn't even be pushing this 1099K nonsense if people had been honest in the first place about reporting their online sales income. And yes, every time I sold anything on Amazon that should have garnered a state sales tax, I took the tax amount out of my own pocket so to speak and turned it in.

The one thing that has consistently surprised me about people selling online is the numbers of folks who seemed to think that this was 'free' money and they wouldn't have to report it! Or those that would have been in business for a year and tthen ask how to figure their taxes and what they had to report! Kind of like that dumb tax commercial where the woman that owns a quilt shop says she guessed at stuff but the tax business found her over $5000.
Amazon Sales Reports Not Helpful for Tax Reporting   Amazon Sales Reports Not Helpful for Tax Reporting
by: Cyn
       Web Site
Thu Apr 7 11:13:18 2011
Have you reviewed your settlement reports? My CPA said my settlement reports will be fine for the new requirements. And Amazon has responded on the new regulations,Here is the link to Amazon's Info on IRS Reporting Regulations on Third-Party Payment Transactions
http://www.amazon.com/gp/help/customer/display.html?no
deId=200663310#calc
Amazon
will have to report your GROSS sales, not just what they paid you. We used to just report what they paid us, but now there is going to be more bookkeeping for everyone.
Amazon Sales Reports Not Helpful for Tax Reporting   Amazon Sales Reports Not Helpful for Tax Reporting
by: mindelec This user has validated their user name.
       
Thu Apr 7 17:14:46 2011
"Second the report does not show how much of our reported sales is shipping. How much fees the fees were by month or anything other than what they are "claiming" are our sales (including shipping)."

go to seller account>get paid>view your payments account, there is a drop down that will let you view and print your payment invoices from them.  the invoice includes gross sales, shipping (it's the number next to "other"), fees and any refunds.  there is also an option to see an itemized list.
Amazon Sales Reports Not Helpful for Tax Reporting   Amazon Sales Reports Not Helpful for Tax Reporting
by: Jumpin Jimmy Jackson
       
Thu Apr 7 22:15:26 2011
Unless I'm misunderstanding, i thought the OP is trying to find out what amazon is going to report. You should report the same number that they are telling the IRS. if you put in a different number, THAT will raise a red flag/audit alert.


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