Single transaction amount of $600 must be reported! eBay calls on sellers to jointly resist the new federal tax law!

eBay123 learned that starting from January 2022, the U.S. Internal Revenue Service (IRS) requires sellers with a single transaction amount of more than $600 to fill out a federal tax report (1099-K). Previously, this report only applied to sellers with a total annual transaction volume of 200 and sales of more than $20,000.

This change will affect all small sellers, including eBay and Amazon, in sales in 2022 and tax returns in 2023. Because a considerable number of sellers just sell goods randomly online, including some second-hand sellers, these sellers have little profit and most of them sell at a price lower than the original price. But under the new legislation, even unprofitable sellers will receive a 1099-K form.

The legislation will also result in sellers having to disclose unnecessary personal information to the IRS and online platforms, and some sellers may even need to pay additional accounting fees to understand the obscure professional issues in the 1099-K form.

eBay believes that millions of small American sellers who sell goods online should not receive unnecessary and cumbersome small transaction tax forms. This new legislation will cause excessive taxation and infringe on the privacy of sellers.

In response, eBay launched a protest (eBay Main Street), calling on sellers to fill out the report together and express their ideas to tell Congress to stop unnecessary tax reporting and protect seller privacy.

Editor ✎Irene/eBay123

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