JOPLIN, Mo.–Starting next January, anyone selling more than $600 worth of goods through services like eBay and Etsy will need to fill out a form to the IRS.
“When you’re in business to sell things online, you need to be filing the proper tax documents to show your income and all your expenses that your business has incurred,” said Kathy Blood, owner of Blood Tax Services in Joplin.
That document is a 10-99 K form. Although, it’s nothing new.
“We’ve seen 10-99 k’s for years,” Blood said. “What it is is it reports whenever somebody is using online sales, they sell online. crafters whoever, anybody will get a 10-99 k reporting the income or reporting their sales to assure that they are reporting them and their income tax return.”
What is new though, is the prerequisite for who needs to fill one out.
“I think they’re doing a lot more requirements maybe now, as they did in the past as far as filling out the proper w-9 forms and things like that …so they’re just realizing it or maybe their sales weren’t to the point that they were required to get which is six hundred dollars.”
Tax experts emphasize that for those with an online business, keeping track of your money is extremely important.
“But when you’re in business to sell things online, you need to be filing the proper tax documents to show your income and all your expenses that your business has incurred.”
Blood also reminds these online business owners that the IRS cracking down on these sellers is actually to their benefit.
“To assist these small businesses because you know because some people’s accounting methods aren’t quite, they haven’t learned properly how to keep track of their income and their expenses so a lot of times people say oh I got this 10-99 k well there are your sales.”
The responsibility of sending out these forms falls on the companies the sellers use, rather than the seller themselves.
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