eBay wants help from sellers to fight the new 1099-K lower reporting thresholds for 2022.
Representative Chris Pappas (NH-1) and 15 other members of Congress recently sent a letter to House Speaker Nancy Pelosi (CA-12) and House Ways & Means Committee Chairman Richie Neal (MA-01) in support of increasing the tax reporting threshold for goods sold online.
Earlier this year, in Section 9674 of the American Rescue Plan Act, Congress lowered the threshold for issuing 1099-K tax forms from $20,000 and 600 transactions down to just $600 and a single transaction.
This new lower threshold will impose hardships on small sellers that have to keep track of personal and business transactions on eBay and other marketplaces.
When goods are sold below the original price paid (personal sales), there is no profit and therefore no income tax owed. But under the new rules, even sellers that sell items at no profit will receive 1099-K forms which are reported to the IRS.
This will likely require small sellers and sellers of personal items to keep additional records in the event of an IRS audit. Some sellers may even have to pay additional accounting fees to have professional accountants sort out the confusing requirements.
In addition, this will also add millions of unnecessary forms for an already overburdened IRS to process.
“eBay feels strongly that we need a threshold for consumer sales of goods that makes sense and protects millions of American consumers from over taxation. If you agree and would like to get involved, we have several ways for you to make your voice heard”eBay Statement
Join the Fight with eBay
eBay invites users to join its grassroots campaign and tell the federal legislators in a user’s district to protect consumers and increase the reporting threshold.
Sellers who sell casually online to supplement their income and would like to share their story with legislators can click here.
eBay thanked Representative Pappas and the other 15 members of Congress listed below for working to protect Americans trying to make ends meet by selling personal goods online.
Letter Signatory List:
- Representative Chris Pappas (NH-01)
- Representative Al Lawson, Jr. (FL-04)
- Representative Anne Kuster (NH-02)
- Representative Cynthia Axne (IA-03)
- Representative Ted Lieu (CA-33)
- Representative Lucy McBath (GA-06)
- Representative Haley Stevens (MI-11)
- Representative Deborah Ross (NC-02)
- Representative Mike Levin (CA-49)
- Representative Marc Veasey (TX-33)
- Representative Anna Eshoo (CA-18)
- Representative Ed Perlmutter (CO-07)
- Representative Eric Swalwell (CA-15)
- Representative Josh Gottheimer (NJ-5)
- Representative Chrissy Houlahan (PA-6)
- Representative Kurt Schrader (OR-5)
Subscribe to Our Newsletter
We do not sell your information.
You can unsubscribe at any time.
Head over to our Facebook Group for Small Business Marketplace Sellers and interact with us and other small business owners. Follow us on Facebook, Twitter, or LinkedIn to stay up to date with relevant news and business insights for your online business.