Monday, April 25, 2011

Dear Joe the photographer, my name is Sam. I'm from the IRS and I'm here to help you!


Hi Pentaxian friends.

Once again, the little guy, not the Corporations, is going to get screwed. After losing our job, many of us had to find a way to support ourselves and our family. Some have find a new job, although the pay is likely less, and some are still left struggling. It's not possible to live with the unemployment insurance alone. Many people have been forced to be creative and sell whatever they can come up with, at flea markets, garage sales, Ebay and Amazon.  Selling on Ebay and Amazon has been a source of moderate income for some. Some good people caught in a bad situation have been able to put food on their table selling through these outlets.  

Did you know that big Corporations like Exxon and GE paid no tax at all in 2010!  The upper echelon of rich people in the US have had their taxes temporarily reduced during the the Bush administration. Now that the current administration is contemplating stopping the temporary tax reduction, they are crying NO TAX RAISING. It wouldn't be raising taxes, it would simply go back to what they were paying during the Reagan administration. Here's one of the problem, all the elected officials earn in the six you think they are going to vote for increasing their own tax burden? No sir, it's the little guy again, that will pay for the overspending. 

Here's a letter that has been sent to Ebay and Amazon sellers:


Hello from Amazon/ Ebay,

We're writing to let you know about new Internal Revenue Service (IRS) regulations that may impact your seller account.

Beginning with the 2011 tax year, new IRS regulations require that U.S. payment processors, including Amazon, file Form 1099-K for sellers that exceed $20,000 in gross sales and 200 transactions in a calendar year. The regulations also require that registered sellers (regardless of account status and sales volume) have taxpayer identification information on file in order for backup withholding not to apply on gross sales.

As a result of the new regulations, sellers will be required to provide taxpayer identification information to Amazon. If the required information is not provided to Amazon in 2011, your Amazon selling privileges will be suspended until you provide the information.

We are committed to making this process simple. In the coming months we will provide instructions on how to enter the required information directly into your seller account. To help protect the security of your taxpayer identification information, we will not ask you to disclose it by e-mail or over the phone.

See answers to frequently asked questions and check back occasionally for updates:

Learn more about the regulations and Form 1099-K at the IRS website:,,id=226894,00.html

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 advisor.

Isn't that sweet!
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