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Will Gunbroker be sending out 1099K??

Dub

There was some big changes to the IRS tax code regarding third party processors. I can't seem to figure out if GB qualifies as that. I could understand if you were using the credit card checkout or Gunborker Pay but I can't find out what happens if you are only taking Cert checks or money orders? Does the collecting of the state taxes count as third party processing? Thanks for any help.

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Comments

16 comments

Date Votes
  • Mr. Perfect

    How should we know?

    6
  • dunbarboyz

    If you don't think you payed enough taxes call the IRS. I am sure after a full audit something will be found.

    3
  • Dub

    1099k's are not new, just a requirement change. Trying to figure out if GB has sent them out in the above scenarios. Someone who sells a lot would know.

    0
  • kannoneer

    I would assume not.

    0
  • mark christian

    This question has come up several times during the 20 years I've been here. In each case the answer was no. You do make a valid point that due to the nexus, things may have changed. Since this is a simple YES or No question of general interest (not particular to yourself) I'll kick it upstairs.

    In the meantime, perhaps @Locust Fork who is one of GB's premier sellers, will drop in and give an opinion.

    3
  • austin20

    1099, 1098 whatever it takes

    6
  • Junkballer

    1099's forms are for non-taxed income paid directly to you, your taxes as a seller has been collected by GB and turned in relieving you of the hassle.

    0
  • Butchdog2

    I thin JB is correct.

    0
  • select-fire
    Junkballer: 30510642016283/comments/30510685058971

    1099's forms are for non-taxed income paid directly to you, your taxes as a seller has been collected by GB and turned in relieving you of the hassle.

    Bingo

    0
  • SW0320
    Junkballer: 30510642016283/comments/30510685058971

    1099's forms are for non-taxed income paid directly to you, your taxes as a seller has been collected by GB and turned in relieving you of the hassle.

    Is this confusing income tax with sales tax? GB collects sales tax not income tax. If 1099k income is not reported on a tax return you will get a very nice letter from the IRS..

    0
  • Junkballer

    I forget the form # but it's similar to the W-2 employee income form but not a 1099, since the seller isn't an employee of GB that is the form ## ? that should be the one sent to sellers. I'd highly recommend checking with a CPA to be safe.

    3
  • Dub

    All right guys I appreciate all the help. I am a very casual seller just moving some of my collection and don't want tax implications. I'm told that even if it's a non-taxable situation, I still need to be ready with documentation should I be audited. Sounds like a big hassle which is why I'm asking the questions. There was some good points brought up here......and some silly ones. lol

    0
  • toad67

    I think that it was a good question, so all of you non-sellers should just keep quiet..😉 I live in a State where we don't have a sales tax, so I'd like to see what M/C can come up with, especially since gb is now under scrutiny to collect taxes for big brother. Places like fleabay are requiring you to submit your S/S number once you exceed $600 in sales. A hefty bill at the end of the year would not be something that I'd like too see, thus the reason that my sales here will be reigned in until I know what is ahead.

    3
  • neacpa

    Okay, I will jump in and give my thought on this. Without knowing exactly how the GunBroker Pay is set up, I would think they are either processing the payments or telling an electronic payment processor how much to send and to whom. If they are processing the payments, they are considered a Payment Settlement Entity (PSE), and would issue a 1099K to the seller. If they are simply telling an electronic payment processor how much to send and to whom, they would be an Electronic Payment Facilitator (EPF) and is therefore responsible for filing the 1099K. If an EPF has a contract with a PSE that the PSE would issue the 1099K, then the PSE would be the one responsible for filing the 1099K. However, if the PSE does not file the 1099K, then the EPF would be the one penalized by the IRS for not issuing the 1099K.


    There, since I would think GunBroker Pay has to either be processing the payments (ESP) or would be classified as an Electronic Payment Facilitator, and unless GunBroker Pay has a contract with the electronic payment processors to issue the 1099K's, then GunBroker Pay will be issuing a 1099K.


    My opinion on this is worth exactly what you are paying for it.

    9
  • Junkballer

    Tax laws change every year, I remember gambling in casino's if you hit anything considered a "jackpot" you gave your name & S/S number and a 1099 was mailed to you to report to the IRS, now the casino's deduct taxes on your winnings right there on the spot and your given a tax form #?? right then to file. Regular winnings other than "jackpots" are left up to you to report or not, those I personally do not 😊. Again I say check with a CPA on this GB tax deduction/reporting mess 😀

    0
  • neacpa

    This 1099K reporting requirement is another reason why individuals who are selling or downsizing their collection at once or over a couple of years should not sell for themselves. Let reputable dealers like Kasey or Ricci (I am sure I am missing another GB forum seller and I apologize) sell for you. Not only should you generate a higher sale price because they have loyal followers/buyers, but the 1099K will be reported to them and not to you, since they are the official seller.

    3

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