Hello,
I have a similar question. FB marketplace requires you to input your SSN after sales total $600 or more regardless of your state residence. Their policy states it is required by US law (none are referenced) and for 1099 purposes. However they include the shipping costs (paid by the buyer directly to FB who I assume has a contract with USPS and THEY make money on) along with adding the sales tax that they are collecting on your behalf and remitting to the state. None of that money is ever deposited into a seller's account. I have had about $450 in sales based on added the listing prices (before paying the FB commission) but they are stating that my sales have hit $600 by adding on the shipping and collected sales tax as mentioned above. This is beyond frustrating as we are selling preowned personal items at a loss similar to having a yard sale. I am uncomfortable about providing my SSN but our payout is currently frozen until I provide it and the items have already been shipped.
Since I am being forced to supply my SSN, won't not reporting 1099K income on a tax return result in a paper audit where you will need to explain why this "income" is not actually income and therefore not listed in your tax return?
