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Fri Dec 27 2019 15:50:14

eBay Leaves Out Info in Notice about IRS Tax Reporting

By: Reader

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Dear Ina,
A question that I and many other eBay sellers have is:

In their December 19, 2019 announcement titled "Information Regarding Your Tax Form 1099-K," did not specifically mention eBay Managed Payments. For those of us switching from PayPal to eBay Managed Payments during the year, will this PayPal 1099-K include revenue and sales tax information for the eBay Managed Payments portion? 

Should we expect a separate 1099-K for the eBay Managed Payments transactions?

Personally, I think eBay should have made this crystal clear in their announcement, but since they didn't, I'm hoping you can get to the heart of this issue.

A loyal reader,
Susan



Comments (5) | Permalink

Readers Comments

Perminate Link for eBay Leaves Out Info in Notice about IRS Tax Repor   eBay Leaves Out Info in Notice about IRS Tax Repor

This user has validated their user name. by: Marie

Fri Dec 27 19:59:48 2019

Paypal is not responsible nor to they handle the payments ran through Managed Payments on Ebay.  

Paypal is responsible for issuing the 1099K for all payments that ran through PayPal.

Ebay is responsible for issuing the 1099K for all payments that ran through MP and meets the requirements of issuing a 1099K

I don't know why Ebay overlooked that important note on that announcement, but you are absolutely right, they sure did.

I hope this helps you.

Perminate Link for eBay Leaves Out Info in Notice about IRS Tax Repor   eBay Leaves Out Info in Notice about IRS Tax Repor

by: Snapped This user has validated their user name.

Sat Dec 28 21:33:16 2019

“ Paypal is not responsible nor to they handle the payments ran through Managed Payments on Ebay.”

Once eBay has control of the moolah, sure. But that payment came from the buyer through eBay’s PP account (for MP). And while PP won’t be snitching to the Treasury ‘per seller’ (what used to be the seller, no matter what acronym name tag eBay chooses to wear after wresting control of the ‘sale’), one can be sure eBay will be exceeding any bottom filters, and they will get that 1099 from PP.

Then they have to parce all that out to issue their 1099 to each buyer. Millions of little pieces.

So - they omit a kind of important clarifier in their ‘announcement’ - par for them.

And these guys are to be trusted to get the math accurate?

Be sure to fasten your safety belts, and keep your head and limbs inside the car during the ride on that rickety carny rollercoaster.

Perminate Link for eBay Leaves Out Info in Notice about IRS Tax Repor   eBay Leaves Out Info in Notice about IRS Tax Repor

This user has validated their user name. by: Marie

Sun Dec 29 02:51:05 2019

@snapped

You can dress it anyway that works for you, but PP is NOT responsible for the 1099's that Ebay's MP will need to issue.  

1099Ks are not required for Buyers, but you probably meant sellers.

The oversight in the announcement was just that and really nothing new for Ebay.  They often omit things that most people, like us, would consider important.

With that said, this year Ebay doesn't need to issue millions of 1099Ks.  They only have about 20,000 sellers currently in MP and not all of them will meet the threshold for having 1099Ks issued.

Perminate Link for eBay Leaves Out Info in Notice about IRS Tax Repor   eBay Leaves Out Info in Notice about IRS Tax Repor

by: angryllama This user has validated their user name.

Sun Dec 29 20:34:48 2019

@Marie ..  You're RIGHT vastly more often than you are "wrong", but you accidentally raised a question for me.

Question:   Are you sure you are CURRENT on the few, VERY FEW, eBay sellers who are in Managed Payments?

I ask as I think I fairly recently read here on eCommercebytes some Press Release or Interview with an eBay suit that cited a MUCH HIGHER number of sellers in the "new managed payments system".

Perminate Link for eBay Leaves Out Info in Notice about IRS Tax Repor   eBay Leaves Out Info in Notice about IRS Tax Repor

This user has validated their user name. by: Marie

Mon Dec 30 01:26:21 2019

@angryllama

It could be a likely higher, IDK but it won't be remarkably higher.  But you are correct my figure is likely several months old.

Keep in mind Ebay is still under contract with PP, so there is only a certain percentage they can have in MP at this time.  This will all change soon.  But for now the contract still exists.



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