Amazon Payments TIN/SSN Requirements

Squarehard

Squarehard

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I'm still a bit confused if this is for tax purposes or security purposes since the email didn't really explain a whole lot.

I know they say it's a federal issue, which is why they are putting it in, but still not sure what that's exactly about.

I'm worried this may be the next step to finally charging fees, or have to file taxes on payments sent through Amazon payments.

Any insight would be appreciated. :bouncy:
 
It's for tax purposes. The government requires it now on eBay as well. If you sell over an amount (I think 20k), you will get a 1099 from them and be expected to pay tax on this.
 
Basically amazon doesn't want to have to deal with someone under the radar they missed so they are just requiring it for anyone remotely close to the number.
 
Thanks for all the responses.

I guess I don't really have a whole lot to worry about since I'm not really a high volume user outside of sending payments here and there for trades.
 
[quote name='Lancey Howard']It's 200 transactions/$20K comination. You must meet both. However, Amazon wants your TIN/SSN for only 50 sales...period.[/QUOTE]

[quote name='Brian9824']Basically amazon doesn't want to have to deal with someone under the radar they missed so they are just requiring it for anyone remotely close to the number.[/QUOTE]

Yeah, I think Amazon is sending out 1099's if you hit one or the other, either $20k or 200 sales, not both. It doesn't matter to me, as I've had thousands of sales this year, and probably close to 100k in sales, if not more.
 
[quote name='Lancey Howard']It's 200 transactions/$20K comination. You must meet both. However, Amazon wants your TIN/SSN for only 50 sales...period.[/QUOTE]

The 50 sales thing is only true for Amazon sellers. The OP is asking about Amazon Payments.

[quote name='Squarehard']I'm still a bit confused if this is for tax purposes or security purposes since the email didn't really explain a whole lot.

I know they say it's a federal issue, which is why they are putting it in, but still not sure what that's exactly about.

I'm worried this may be the next step to finally charging fees, or have to file taxes on payments sent through Amazon payments.

Any insight would be appreciated. :bouncy:[/QUOTE]

This rule was originally created so Amazon could be in compliance with the new IRS law, but the company has decided --quite arbitrarily, mind you-- to extend the requirements to every user of Amazon Payments. As I said, pre-edit:


"Amazon requires an SSN/TIN for all customers regardless of payment volume. As of this point, there is no firm deadline on doing so, but they ask that you update your account 'as soon as possible'."

As for reasoning, they say this: "It is Amazon Payments' policy for Amazon Payments accountholders to provide taxpayer identification information to Amazon Payments."

That's it. No explanation, no way to opt-out short of closing your account. Nothing.
 
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Yeah, when I first saw this I didn't like the fact that Amazon required SSN info while at the same time the IRS had no documentation up on their website in regards to the actual forms / conditions for filing.

I'm guessing that Amazon is just covering their asses vs. the regulations, but it'll be interesting to see what happens if they report all sales (including the Amazon Payments kind) as profits. Namely because if you sell any personal possession to break even / at a loss that amount isn't taxable (Note that the IRS defines "sellers" and "collectors" quite differently)
 
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