Tax Relief with Logan Allec, CPA
Do you owe back taxes to the IRS or your state government or have unfiled tax returns? Then this is the podcast for you! Every Monday, Wednesday, and Friday, Logan Allec, CPA — owner of A+ BBB-accredited tax resolution firm Choice Tax Relief — explains exactly how to get tax relief for your back tax debt. Would you like a FREE tax relief consultation with Logan's company, Choice Tax Relief? Schedule your consultation now by calling 866-8000-TAX!
Tax Relief with Logan Allec, CPA
Sold Someone Else's Stuff on eBay? The IRS May Come After You
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Do you owe at least $10,000 in back taxes? Book your FREE consultation with Choice Tax Relief by calling 866-8000-TAX or booking here:
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They sold someone else's equipment on eBay, split the proceeds, and received a Form 1099-K reporting about $219,000 under their own Social Security number. Now the IRS says they owe. What went wrong, and what should they do next?
In this video, I review an eBay seller's account of a complicated IRS dispute involving PayPal, Form 1099-K, the Automated Underreporter unit (AUR), and the Taxpayer Advocate Service (TAS).
I discuss why the gross amount reported on a 1099-K needs to be reconciled with the tax return, how the seller's arrangement and payments to the equipment owner affect the analysis, and why records are so important. I also explain why I would preserve the appeal rights described in the seller's Letter 106C instead of relying on a possible adjustment that hasn't been finalized.
The correct reporting depends on the actual arrangement and supporting records. Follow the deadlines in your own IRS correspondence.
0:00 The eBay seller's IRS problem
0:34 A $219,000 Form 1099-K and a 50/50 arrangement
1:30 Where the reporting went wrong
3:12 The reconstructed Schedule C and IRS adjustments
4:25 Appeal or wait for the Taxpayer Advocate Service?
6:34 Records that support your position
8:21 Keep your own copies of financial records
9:01 The takeaway for sellers
IRS resource: What to do with Form 1099-K
https://www.irs.gov/businesses/what-t...
#eBay #1099K #TaxRelief