Hello all,
So I filled my taxes back in 2022 with no problem. Then later that year I got a 1009-K from PayPal. The amount is for $26,467.61. This obviously trigger an audit or something from the IRS as they now sent a letter saying I owe taxes that year.
My issue though…. This large amount looks great until you know the facts. It was sold under or right at the value of items. I was selling vinyls on Discogs to clear space out. I took my collection down from 5000 vinyls to 3813 vinyls. Easy math even says they sold at $22.30 each. Thats if you ignore seller fees from Discogs themselves and shipping. Each vinyl originally cost me easily $20 or more. I’m completely at a loss what to do now as this letter says I owe around $3600 in taxes. I was under the impression since I sold for under my original cost it wasn’t a problem. Granted I guess the ITS just sees the large number, but still….
Can anyone please advise? I would also like to add I have the 1099-K, but do not have access to Discogs any longer for my sales logs. I was using an old work email with an ex employer and lost access about a year ago. I tried to contact Discogs and they just told me the accounts been closed and I was free to open a new one, which I have. I feel hopelessly stuck atm. Do I simply revise my 2022 filing and add this? Or?.. :(
