Author Topic: amazon payments IRS audit risk? (Read 5866 times)

jblacker · « **on:** December 25, 2012, 04:52:56 PM »

does anyone know if amazon reports all transactions to the iRS will i risk an audit if i send and receive 12k a year?

meshugener · « **Reply #1 on:** December 25, 2012, 05:17:46 PM »

This question has been asked a million times her, but see here:
http://money.cnn.com/2010/05/21/smallbusiness/1099_deluge/index.htm

Moishebatchy · « **Reply #2 on:** December 25, 2012, 06:41:35 PM »

Quote from: meshugener on December 25, 2012, 05:17:46 PM

This question has been asked a million times her, but see here:
http://money.cnn.com/2010/05/21/smallbusiness/1099_deluge/index.htm

I read through it quickly, and now I'm even more confused than before.

U-no-me! · « **Reply #3 on:** December 25, 2012, 06:42:31 PM »

Quote from: Moishebatchy on December 25, 2012, 06:41:35 PM

I read through it quickly, and now I'm even more confused than before.

I think if it's less than $20,000 a year your good. maybe $:-\$

meshugener · « **Reply #4 on:** December 25, 2012, 06:47:35 PM »

From my understanding its 200 transacions + $20k in transactions that's requiering a 1099. CMIIW.

A3 · « **Reply #5 on:** December 25, 2012, 06:48:07 PM »

Well what ever you received, didn't you send as well, and just make even? All my accounts I receive yes, but also SEND money every month, no profit was made...HMMMM

meshugener · « **Reply #6 on:** December 25, 2012, 06:49:38 PM »

Quote from: A3 on December 25, 2012, 06:48:07 PM

Well what ever you received, didn't you send as well, and just make even? All my accounts I receive yes, but also SEND money every month, no profit was made...HMMMM

In my case, its more complicated than this

HelpMe · « **Reply #7 on:** December 25, 2012, 06:50:12 PM »

Quote from: Moishebatchy on December 25, 2012, 06:41:35 PM

I read through it quickly, and now I'm even more confused than before.

Payment processors are required to issue a 1099-k when you have 200 or more transactions for a total of 20k or more. They can at their own discretion issue one for any amount and some do.

Moishebatchy · « **Reply #8 on:** December 25, 2012, 07:13:24 PM »

Quote from: HelpMe on December 25, 2012, 06:50:12 PM

Payment processors are required to issue a 1099-k when you have 200 or more transactions for a total of 20k or more. They can at their own discretion issue one for any amount and some do.

Care to elaborate?

Name Changed · « **Reply #9 on:** December 25, 2012, 07:18:31 PM »

Quote from: Moishebatchy on December 25, 2012, 07:13:24 PM

Care to elaborate?

If you do 200 transaction or $20k in transaction Amazon, Paypal and any other payment processor is required to issue you a 1099-k. It doesn't mean you made $20k that is taxable, file it as a $0 profit.

200, or $20k is what the IRS requires them to issue it, but they could issue you a 1099-k for any amount (even less(

Moishebatchy · « **Reply #10 on:** December 25, 2012, 07:37:36 PM »

Did you see which words I bolded and underlined?

BAHayman · « **Reply #11 on:** December 25, 2012, 07:47:37 PM »

Quote from: Moishebatchy on December 25, 2012, 07:13:24 PM

Care to elaborate?

Intuit GoPayment.

Chaikel · « **Reply #12 on:** December 25, 2012, 07:51:26 PM »

Does Chase QP fall under the payment processor category?

meshugener · « **Reply #13 on:** December 25, 2012, 08:34:54 PM »

Quote from: Name Changed on December 25, 2012, 07:18:31 PM

If you do 200 transaction or and $20k in transaction Amazon, Paypal and any other payment processor is required to issue you a 1099-k. It doesn't mean you made $20k that is taxable, file it as a $0 profit.

200, or and $20k is what the IRS requires them to issue it, but they could issue you a 1099-k for any amount (even less(

FTFY

meshugener · « **Reply #14 on:** December 25, 2012, 08:35:25 PM »

Quote from: Chaikel on December 25, 2012, 07:51:26 PM

Does Chase QP fall under the payment processor category?

Do you see why not?

Name Changed · « **Reply #15 on:** December 25, 2012, 08:55:54 PM »

Quote from: meshugener on December 25, 2012, 08:34:54 PM

FTFY

I see.
For 2011 Paypal was issuing the 1099-k for 200 or $20k, Now as per Section 6050W its for and

yitzf · « **Reply #16 on:** December 26, 2012, 12:16:20 AM »

I think we can put this to rest for once and for all.

https://payments.amazon.com/sdui/sdui/helpTab/Personal-Accounts/User-Agreement-Policies/Federal-Regulations

Quote

Will you file Form 1099-K for my account if I only exceed one of the two thresholds?
No. Unless you exceed both thresholds ($20,000 in gross payment volume and 200 transactions) we will not file Form 1099-K for you.

meshugener · « **Reply #17 on:** December 26, 2012, 08:38:42 AM »

@Chaikel
One difference I see with QP is that you can have a QP account without providing them your SS#, so I don't think they would issue a 1099 for such an account.

jblacker · « **Reply #18 on:** January 02, 2013, 06:30:08 PM »

Quote from: meshugener on December 25, 2012, 06:47:35 PM

From my understanding its 200 transacions + $20k in transactions that's requiering a 1099. CMIIW.

apparently no one read the article wich says
"Starting in 2012, that changes. All business payments or purchases that exceed $600 in a calendar year will need to be accompanied by a 1099 filing."

yitzf · « **Reply #19 on:** January 02, 2013, 06:33:44 PM »

Quote from: jblacker on January 02, 2013, 06:30:08 PM

apparently no one read the article wich says
"Starting in 2012, that changes. All business payments or purchases that exceed $600 in a calendar year will need to be accompanied by a 1099 filing."

Link pls.

Is that article from Amazon?