U.S. Income Reporting & Tax Identity Collection FAQ

The information you provided relates to the IRS Form 1099-K reporting requirements for sellers on Amazon. Here are the key points and frequently asked questions (FAQs) addressed in the provided information:

1. **Reporting Threshold Change for 2022:** Starting from sales made after January 1, 2022, Amazon is required by the IRS to issue a Form 1099-K to all sellers who receive $600 or more in unadjusted gross sales, regardless of the number of sales transactions.

2. **Threshold for Prior Years (Pre-2022):** For calendar years prior to 2022 (including the 2021 tax year and earlier), a Form 1099-K was issued if a seller had more than $20,000 in unadjusted gross sales and more than 200 transactions.

3. **Tax Identity Information:** Sellers are required to provide their tax identity information within 30 days of receiving an email notification from Amazon. This information includes completing a tax interview, and it's necessary even if the information triggering the collection of identifying information is later changed or deleted.

4. **Updating Tax Information:** Sellers can update their tax information through the tax interview process in their seller account. This includes providing a valid Taxpayer Identification Number (TIN) or Employer Identification Number (EIN) if applicable.

5. **Non-US Sellers:** Non-US sellers are also required to provide tax information, and they may need to complete an IRS Form W-8BEN.

6. **Consequences of Not Providing Information:** Failure to provide valid tax identity information can result in the suspension of your selling account.

7. **IRS Form 1099-K:** Amazon will issue a Form 1099-K to sellers who meet the reporting threshold for a given tax year. Sellers can access this form in their seller account, and it will be made available on or before January 31 of the following year.

8. **Handling Errors or Updates:** If there are errors on the Form 1099-K or if you need to update your tax information, you can do so through the seller account. Address changes, tax ID updates, or other corrections can be made by retaking the tax interview.

9. **Using the Form 1099-K for Tax Returns:** Sellers are encouraged to consult with tax professionals for guidance on how to use the Form 1099-K for their tax returns, as Amazon does not provide tax advice.

10. **Transactional Details:** Sellers can access transactional details, including unadjusted gross sales, through various reports in their seller account. These details can be useful for reconciling reported amounts on the Form 1099-K.

Please note that the information provided is for general guidance, and it's important to consult with tax professionals or legal advisors for specific tax-related questions and compliance with IRS regulations. Tax laws and regulations may change, so it's essential to stay informed about the latest requirements.