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Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). She is a member of the Online News Association (Sep 2005 - present) and Investigative Reporters and Editors (Mar 2006 - present). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com. See disclosure at EcommerceBytes.com/disclosure/.
A little late
As the IRS threshold for reporting one’s payments received has always been $600.00 and tax payers are still able to deduct the entire purchase price and any selling costs that are associated with their goods sales, there is absolutely nothing inherently unfair about the newly instituted 1099-K reporting requirements for venues.
The Coalition for 1099-K Fairness is simply trying to protect its members’ corporate profits, which are now imperiled by the enforcement of the previously enacted tax laws.
Maybe, but it is true that the IRS threshold of $600 is ridiculous. The point is that many people use eBay and other online selling venues to get rid of used items and they should not be taxed on them. It would be like requiring all garage sales to file tax returns as well.
So under your idea these people who think that they are entitled to not pay taxes. Does that mean that because i pay taxes on my earnings I can deduct the first 600.00 from my gross. If not why not. What makes them think that they are any better than a regular taxpayer who pays there taxes and doesn’t whine about it all the time.
People aren’t being taxed on items sold (well unless you consider eBay fees a tax). When selling used items you might pay tax if you make a profit over what it cost you (original purchase price minus depreciation, carrying costs etc.) so on the majority of used goods there is ZERO tax to pay.
People don’t seem to comprehend this basic fact and the sales platforms (eBay, Amazon, Mercado…) don’t seem to want to educate sellers to this simple fact.
I warned people “Be careful who you vote for”. But nobody listened. So now, enjoy the [bleep] show.
@JayThom
Re: “The point is that many people use eBay and other online selling venues to get rid of used items and they should not be taxed on them.”
While this may also be true, there are considerably more venue sellers generating untaxed annual profits through their unreported venue sales.
In addition, some sellers are also avoiding reductions to and/or the elimination of their disability, SNAP, and/or social security benefits (i.e., to name a few) by not reporting their so called non-business related (i.e. “hobby”) goods sales.
As was stated earlier, tax payers can still deduct the entire purchase price and any selling costs that are associated with their sales.
“Ignorance of the law is not an excuse.”
The venues should be educating their customers (i.e. sellers), rather than trying to modify and/or overturn a law that neither the Congress or the President has any intention of changing.
To further stem a growing tide of tax evasion, which is estimated to be around $600 billion per year, from what I have read, a proposal was made in October 2021 to provide the IRS with data on the deposits and/or withdrawals to and from bank accounts with balances of more than $600.00.
While the aforementioned proposal was never implemented, the idea that a law like this was even proposed should send shivers down the spines of poor and middle-class Americans alike.
They care for sellers? Why raising fees fro sellers then? Why making sellers raise their prices due to fee increases? Why driving buyers away because of excessive fees to sellers who are forced to raise the prices? All I can tell that they don’t fight for sellers. Did they have too much of underreported income when 1099k threshold wasn’t enforced? And all you sellers think that even if they get government to give up on $600 threshold then your fees will be lower?