Power Sellers Unite

elgato · Joined: 24 Feb 2005 Posts: 17240 Location: Texas

Online sellers have known for some time that, if they meet new minimum thresholds in annual volume and revenue set by the Internal Revenue Service, they can expect to be subject to new tax-reporting requirements.

But it is becoming increasingly clear that those thresholds are not the end of the story, as at least one ecommerce giant is setting its own, more stringent requirements out of what it describes as an abundance of caution.

The requirements stem from an obscure provision included in the 2008 Housing and Economic Recovery Act that created a new tax form, the 1099-K, that credit card companies, online payment providers and others will have to file reporting monthly transaction totals for the merchants they serve.

A draft copy of the form is available in PDF format here. The IRS says that the final version will be posted soon.

http://www.auctionbytes.com/cab/abn/y11/m10/i07/s02

things4u · Joined: 21 Jan 2007 Posts: 1331

Well isn't that special new it was going to come to this it is going to stop all the hobby sellers either your a registered business or your done lol as there won't be any way that you can sell something and not pay the taxes.

And if you think that the 20,000.00 or 200 is going to be the bar think again as they will see millions that they are missing in taxes collected from those that don't hit the required numbers of sales or the 20 grand amount bye bye part time sellers,hobby sellers,ocasional sellers the tax man is coming for you no matter how little it is they want it and all of it.