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IRS Reporting Regulations on Third-Party Payment Transactions
Due to new Internal Revenue Service (IRS) regulations, Amazon has to obtain identifying information, such as a tax ID, from certain sellers on Amazon's US, and non-US websites. In general, the IRS regulations require us to collect identifying information from sellers who have a US address, US banking information, or other identifying information connecting the seller to the US. If the information you provide during the interview indicates you are a US taxpayer and have more than 200 transactions resulting in more than USD20,000 in unadjusted gross sales, Amazon is also required to report Form 1099-K to the IRS.
To assist its sellers in complying with these IRS rules, Amazon has put in place a system for identifying sellers from whom it must obtain identifying information. Once you receive a notification, you will have to complete the tax interview, even if the information that triggered the collection of the identifying information is changed or deleted at a later date. You can provide your information to us by clicking here and using a self-service interview process that will guide you through entering your taxpayer information and validating your W-9 or W-8BEN form. In order to fulfil the IRS requirements as efficiently as possible, answer all questions and enter all information requested during the interview.
Avoid misspellings or entering incorrect Tax Identification Numbers, both of which can result in an invalidated tax form. Move forward or backward through the interview process at your own pace. Don't worry if you're not sure which form (W-9 or W-8BEN) applies to you. The answers you provide during the interview will automatically determine that for you. To help protect the security of your taxpayer identification information, please do not disclose it by email or over the phone.
Help is available throughout the interview process, including links to IRS publications that support the IRS forms W-9 and W-8BEN.
See answers to frequently asked questions below, and learn more at the IRS website.Important Notice: Information in this document does not constitute tax, legal, or other professional advice and must not be used as such. To find out how this new legislation will affect your business, or if you have other questions, please contact your tax, legal, or other professional adviser.
Frequently Asked QuestionsRegulations
The regulations are under section 6050W of the Internal Revenue Code. Please see the IRS website for more information.
Yes, these regulations apply to both non-profit and for-profit organizations and entities.
If you have not provided valid tax identity information, your account will be considered in violation of Amazon policies and you will be suspended.
Tax Identity Collection & Validation
By completing the tax interview in your seller account, you will be providing us the appropriate tax identity in the form of a W-9 or W-8BEN form.
Yes, even if you are a non-U. taxpayer, you still need to provide us information and the responses you give to the tax interview wizard questions will create the appropriate tax form on your behalf.
I am not going to come even close to hitting the reporting threshold. Why do you require my tax identity?
Validations can take up to three weeks to complete. After you update your tax identity information, the Legal Entity section of your Account Info page will display "Provided and Pending Validation". If we find your information doesn't match IRS records, we will send you an e-mail with instructions on how to proceed.
I received an e-mail stating that my tax identity information is invalid. I thought I provided my correct information. Can you tell me why it came back invalid?
We don't know exactly why your tax identity information came back as invalid, but here are some things to consider:
No, the interview does not collect information about VAT. We will continue to collect your VAT information within the Account Info page.
Reporting & Document Retrieval
For each calendar year, if you exceeded $20,000 in unadjusted gross sales and 200 transactions, a Form 1099-K will be provided to you. If you did not meet both of these thresholds, you will not receive a Form 1099-K. We will track your unadjusted gross sales and number of transactions. You will also be able to tell if you have exceeded the thresholds by monitoring your unadjusted gross sales and number of transactions in your accounts.
We will post a copy of your form by January 31 of the following year to the address provided by you in the tax interview. For more instructions on filling in Form 1099-K, please visit the IRS web site: http://www.irs.gov/pub/irs-pdf/i1099gi.pdf.
The Form 1099-K was sent to the address you provided in the tax interview. If you believe you should have received a Form 1099-K and didn't, please contact Seller Support.
The $20,000 is calculated based on unadjusted gross sales. Unadjusted gross sales means the total sales, unadjusted for fees or refunds. It is the amount the buyer paid for an order even if the order is later refunded.
Unadjusted gross sales equals the amount the buyer paid for the order and includes sales proceeds, and gift-wrap and shipping charges.
No. When you make a sale, the order total becomes a permanent part of your unadjusted gross sales for the year. Even if you later refund the entire amount a buyer paid for an order, the order total is still included in your unadjusted gross sales calculation. The IRS regulations require that no adjustments to gross transaction amounts be made. Please seek advice from a tax professional to understand the appropriate adjustments when preparing your tax return.
If I have multiple accounts with the same tax identification number and they exceed the thresholds when the account totals are combined, will you file Form 1099-K for my combined seller accounts?
Yes. Unadjusted gross sales and transaction volumes will be consolidated for all accounts that have the same Tax Identification Number (TIN). A Form 1099-K is issued by Amazon as applicable for each jurisdiction you sell in. If you sell across different regions with Amazon, you may receive more than one Form 1099-K. Please assist us by providing your taxpayer identification information in each of your seller accounts regardless of thresholds. This will help ensure that we report all accounts with the same TIN on Form 1099-K as required by the regulations.
To find out how this legislation and Form 1099-K affect your business, or if you have other questions, please contact your tax, legal, or other professional advisor.
While we are committed to helping sellers understand the requirements under these new tax regulations, we do not provide tax guidance. Please contact a tax professional.
Please contact Seller Support by clicking the Contact Seller Support link at the bottom of any seller Help page, and provide the details of the issue.
1099-K Form Reconciliation
Please use the e-mail address associated with your Amazon.co.uk Seller account.
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