eBay told some sellers to disregard the IRS 1099-K forms it had generated because of a “recent technical issue.” On Wednesday, we wrote about sellers in California who were puzzled because eBay issued them 1099-Ks despite being below the reporting threshold ($20,000 in sales and at least 200 transactions in 2021).
On Friday, eBay notified some California sellers to disregard IRS Form 1099-Ks that had been provided to them.
A reader forwarded the following message they received from eBay:
“A recent technical issue resulted in a 1099-K form being incorrectly provided to you. Please disregard the incorrect 1099-K form. The incorrect 1099-K form was not sent to the IRS or California Franchise Tax Board.
“We’re working to resolve the issue and ensure that it will not happen again. Unless you had more than $20,000 in gross sales and 200 transactions in 2021, we will not submit a 1099-K form to the IRS or the California Franchise Tax Board.
“We sincerely apologize for the error and any inconvenience this may have caused.
“As always, thanks for selling on eBay, and for being part of the eBay community.
“The eBay Selling Team”
Low-volume sellers had been concerned all week about why eBay had generated a 1099-K for their accounts, such as this thread on Tuesday.
Sellers also discussed today’s notification on the eBay discussion boards. One seller said the glitch impacting sellers in California wasn’t the only issue: “eBay is blundering all over the place and not even acknowledging the issues. The 2021 1099-K rollout has been a disaster on multiple levels,” they wrote.
A warning from the Internal Revenue Service this week points to how glitches like eBay’s can have dire consequences. The IRS warned taxpayers not to file prematurely: “People who file before they receive all the proper tax reporting documents risk making a mistake that may lead to processing delays.”
“Typically,” the agency continued, “year-end forms start arriving by mail – or are available online – in January. Taxpayers should review them carefully. If any of the information shown is inaccurate or not available, taxpayers should contact the payer right away for a correction or to ensure they have their current mailing or email address.”