So you got the infamous 1099-K from Amazon, now what?
Well, the first thing to do is congratulate yourself on a job well done! That’s right. Your unadjusted gross sales were over $20,000 and you had over 200 transactions on Amazon Marketplace or their related services. The next thing you do is look at the total and immediately think, “That’s not right.” Maybe you go to Seller Central and start pulling numbers but soon realize there are no matching figures on any reports from Amazon. Uh, oh. Panic may set in but don’t fret just yet. Now, you may flip the form over and see instructions from Amazon on how to reconcile the total. The problem is the instructions are not very helpful for most people. Often the best Certified Public Accountants can’t sort out the numbers, so you are in good company. Even so, it’s enough to send many sellers into a tailspin of fretting over the implications with no clue how to sort it out.
Gain peace of mind that your annual tax reporting is correct.
We developed a system to reconcile the 1099-K for Amazon sellers and return results within 24 hours. Wow! That’s got to make you smile. With two pieces of information, we will reconcile the numbers and get them right back to you. You’ll receive a pdf copy of the reconciliation you can present to your CPA or file in your tax records. While the 1099-K is for reference only, there is a need to know the accounting is correct for tax purposes and to avoid receiving the IRS notice that your reported income does not match their records. They get a copy of the 1099-K too, so we need to make sure the information filed matches.
Here’s what we need to process your order.
A Date Range Summary Report and your 1099-K. Feel free to redact any personal information on these items. We only need the amounts.
Please email or share via Google Drive with: firstname.lastname@example.org
Please be sure to use your same email address for orders and documents so we can match them. Also, provide your best contact info in the body of your email in case we have questions.
- You can find the 1099-K form in Seller Central. From the Reports section, select Tax Document Library, then the appropriate year, and then Form 1099-K.
- You can find the Date Range Summary Report in Seller Central. From the Reports section, Choose Payments then select Date Range Reports tab, then click Generate Report button, choose Summary radio button, choose the Custom radio button, then choose the Date Range beginning with January 1st and ending with December 31st of the year for the 1099-K in question. Click Refresh on the document line. Once the Download button is visible click it. You will get a pdf of the Summary to send to us.
Most clients will balance to the penny, however, clients with sales overlapping between December and January will see a difference in their totals. Amazon is aware of this in their reporting and states so on the 1099-K. (see image) Our service can’t reconcile to the penny if Amazon is reporting two different amounts based on year-to-year overlap. There is no refund for this overlap. We will get as close as humanly possible using the two reports Amazon supplies.