EB Lobbying For Change In New 1099 Tax Law - CLOSED

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Got this from Feinstein...

Dear Mr. Humiston:

Thank you for writing to me regarding federal tax provisions. I appreciate hearing from you, and I welcome the opportunity to respond.

I understand you have concerns regarding Section 9674 of the American Rescue Plan Act of 2021, which amended the thresholds for tax reporting for third-party settlement organizations. As you noted, the new requirement lowers the annual 1099-K reporting threshold from $20,000 and 200 transactions to a threshold of $600 and no transaction minimum. I understand that this regulation will require additional reporting for some taxpayers, though it does not alter their tax burden. I believe that we must balance the need for increased transparency in tax reporting with economic growth, particularly for small businesses. We must also bear in mind the need to keep reporting requirements reasonable, especially for individuals.

I appreciate hearing your views and will be sure to keep them in mind should legislation to adjust the tax reporting thresholds come before the full Senate for a vote.

Once again, thank you for writing. Should you have any other questions or comments, please call my Washington, D.C., office at (202) 224-3841 or visit my website at feinstein.senate.gov. You can also follow me online at YouTube, Facebook, and Twitter, and you can sign up for my email newsletter at feinstein.senate.gov/newsletter. Best regards.





Sincerely yours,

Dianne Feinstein
United States Senator​
 
CDHumiston said:
Got this from Feinstein...

Dear Mr. Humiston:

Thank you for writing to me regarding federal tax provisions. I appreciate hearing from you, and I welcome the opportunity to respond.

I understand you have concerns regarding Section 9674 of the American Rescue Plan Act of 2021, which amended the thresholds for tax reporting for third-party settlement organizations. As you noted, the new requirement lowers the annual 1099-K reporting threshold from $20,000 and 200 transactions to a threshold of $600 and no transaction minimum. I understand that this regulation will require additional reporting for some taxpayers, though it does not alter their tax burden. I believe that we must balance the need for increased transparency in tax reporting with economic growth, particularly for small businesses. We must also bear in mind the need to keep reporting requirements reasonable, especially for individuals.

I appreciate hearing your views and will be sure to keep them in mind should legislation to adjust the tax reporting thresholds come before the full Senate for a vote.

Once again, thank you for writing. Should you have any other questions or comments, please call my Washington, D.C., office at (202) 224-3841 or visit my website at feinstein.senate.gov. You can also follow me online at YouTube, Facebook, and Twitter, and you can sign up for my email newsletter at feinstein.senate.gov/newsletter. Best regards.





Sincerely yours,

Dianne Feinstein
United States Senator​
Click to expand...

Yeah, I just got that response too. Doesn't seem too favorable her voting to change the existing 1099 reporting law. :(
 
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I did not get a notice from eBay, thanks for posting this and the link!! I sent my letter in although I am doubtful it will help. I think ebay is losing money which is why they are pushing this, I seem to see less items on my saved searches these days and likely some part time sellers have dropped off. I haven't sold much there myself but I do buy a lot there. I was planning on selling stuff more often this year but decided not to since I hate dealing with paperwork and taxes. I don't have to pay taxes on things I sell that I bought years ago at a yard sale even if I make some money on collectables, why should I have to do so online. In general even if I make a few bucks on collectables ata yard sale I am losing money on my used clothing and tools, etc, and were I to compute the loss on the used items it would cancel out any profit on the collectables. This law really only seems to apply to online sales and electronic payments and as stated is really unfair to folks like myself living on a meager fixed income and needing to sell off inherited and collected items.
 
On another note, I am getting ready to sell off my entire comics collection to a local store.

I wonder what kind of 1099 this will generate. My comics are from the early 1990's and I have ZERO receipts for my investment...
 
90s comics aren't all that valuable I sold a lot of comics with a mix from the golden age to 90s and I got $70 for them it was probably around 30-40 comics in total. I know that there were some in the lot that would probably sell for $20+ I did pull out 4 at each of them can sell for enough on their own. I kept Submariner #1, Submariner #5, Silver Surfer #10, and Moon Knight #1 which if you look them up all are capable of fetching over $100 in top condition, which most of mine aren't, but even if not they most all fetch $50+.
 
CDHumiston said:
On another note, I am getting ready to sell off my entire comics collection to a local store.

I wonder what kind of 1099 this will generate. My comics are from the early 1990's and I have ZERO receipts for my investment...
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This would not generate a 1099 because it's not a G&S transaction handled by credit card thru an online retail transaction processor like EB or etsy wc the new law is designed to target.

So, as long as the store pays you in cash or equivalent, there shouldn't be a problem, which the same as people are doing here selling via PP FF, Zelle, MO and other cash methods in order to avoid 1099 reporting.
 
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CDHumiston said:
On another note, I am getting ready to sell off my entire comics collection to a local store.

I wonder what kind of 1099 this will generate. My comics are from the early 1990's and I have ZERO receipts for my investment...
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First of all, I'm definitely pressing "F" to pay respects, because you're going to get lowballed (btdt), and secondly I'm not sure if they'll actually take the time to report such a transaction, considering that's how most comic stores get their backstock inventory, and if word got around that not only were you getting a fraction of what your comics were worth, that you'd have to then explain to the .GOV that no real profit had been made, it would probably make people think twice before doing so in the future, which wouldn't be in the store's best interests, that's for sure.
 
Unless the law changes, seems like classified ads and cash transactions in person are the way to go.
 
Quiet said:
First of all, I'm definitely pressing "F" to pay respects, because you're going to get lowballed (btdt), and secondly I'm not sure if they'll actually take the time to report such a transaction, considering that's how most comic stores get their backstock inventory, and if word got around that not only were you getting a fraction of what your comics were worth, that you'd have to then explain to the .GOV that no real profit had been made, it would probably make people think twice before doing so in the future, which wouldn't be in the store's best interests, that's for sure.
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I know I will get lowballed, but I just don't feel like selling them individually online. If they give me a ridiculous low number I'll just walk.
 
Anyone concerned with not having receipts - and who would be under microscope for significant tax, why not just file an affidavit declaring whatever facts you know to be true regarding the disparity between original price paid and sale price received.
 
Another response I received, but not very relevant:

TaxLaw.jpg
 
Easier just to avoid generating 1099 trackable transactions. Friends & Family is your friend. Money orders are your friends.
 
So, I'm going to close this thread.

Was hoping that EB's involvement would cause some movement but it's been to no avail despite the fact that this law will do little to nothing in terms of increasing Federal tax revenue (or compliance) among small businesses that use EB, Amzn, Etsy and other sites to sell their products.

All it does is inconvenience non-business collectors of knives (and other such things) who have to use EB or other sites that are required to report sales w/a 1099 to sell their stuff.

I haven't sold any knives for a long time but there are a lot of knives that I "should" sell and when I did this in the past, only some of them were of any interest on BF and the rest I had to dump on EB.

Fortunately, I have records for "most" of the knives that I've ever purchased but certainly not all of them. All the new law does for me is create a headache of a reporting requirement which will almost certainly show a net loss (or only a marginal profit) at best.

For what? Nothing as far as I'm concerned but it is what it is and that's the world we live in. Oh well . . . 🤷‍♂️
 
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