eBay, Etsy and other six platforms set up 1099-K Fair Alliance to jointly resist the new tax law!

It is learned that according to foreign media reports, eBay recently co-founded the 1099-K Fairness Alliance with Etsy, Mercari, OfferUp, Poshmark, Reverb (owned by Etsy) and Tradesy (owned by Vestiaire Collective).

The 1099-K Fairness Alliance is dedicated to maintaining an accessible, fair and safe resale market for used and second-hand goods through online platforms, while empowering entrepreneurs and micro-enterprises to conduct business through online sales, according to the alliance's website. The 1099-K Fairness Alliance's mission is to raise the tax reporting threshold for sales on online marketplaces.

It is reported that the U.S. Internal Revenue Service (IRS) has issued a 1099-K tax filing requirement. From January 1, 2022, sellers with a single transaction amount of more than $600 must fill out a federal tax report (1099-K). Previously, the report only applied to sellers with a total annual transaction volume of 200 transactions and sales of more than $20,000. This change will affect many small sellers in the United States, especially some sellers selling second-hand goods, for whom profits will be greatly reduced. But under the new legislation, even unprofitable sellers will receive a 1099-K form.

The report said that the 1099-K Fairness Alliance also displayed a survey result on its website, revealing sellers’ views on the new IRS regulations:

1. 85% of respondents said the IRS should not target individuals who only occasionally sell online;
2. 69% of respondents said they would stop or reduce online sales due to the new IRS regulations;
3. Nearly 40% of respondents said the new regulations would cause financial difficulties.

It is reported that the survey subjects are American adults who have sold items online in 2021 and the sales amount is less than US$20,000. Many of them sold items on eBay, Etsy, OfferUp, and Poshmark.

It is understood that the establishment of the 1099-K Fairness Alliance is to attract the attention of the US authorities and industry insiders, so that the US authorities can hear the voices of small and micro businesses in order to further raise the tax filing threshold, help companies earn more income online, and be more willing to sell in the online market.

Editor ✎ Nicole/

Disclaimer: This article is copyrighted and may not be reproduced without permission.