IRS News Update May Create Tax Issues for Amazon Sellers
Possible tax issues for Amazon sellers: All right, AMZ sellers, this video is for anyone who hates the IRS or at least hates sending the IRS more money than they have to.
So starting now, in January of 2022, the Internal Revenue Service, the dreaded IRS, has changed its 1099-K reporting requirements.
It used to be that if you had less than 200 transactions or you were doing less than $20,000 a year, the 1099-K wasn’t required. Well, guess what? The rules changed and it’s not just Amazon who’s making your life more difficult, now it’s the IRS.
So here is the new rule and I am not a tax lawyer, but this is pretty simple… Any online sales with an annual gross of over $600, that money is now required by the Internal Revenue Service to be reported on the 1099-K.
Now I know this isn’t good news for Amazon sellers. It’s not good for any business person, smaller business people you supported, but the law is the law. So anybody, any company with sales over $600 over the entire year, which is like nothing, now you’re going to get the 1099-K and I wish I could do something about it, but I can’t.
If you have questions, if I can answer you, please contact me. I’ll do my best to answer your questions. I’m not a tax lawyer, but this stuff is pretty simple. So January 2022, I still think the year is going to be better than 2021, not when it comes to this reporting requirement.
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