I followed similar advice about not reporting and then was recently hit with a tax notice from the IRS for underreporting my 1099-K income on my 2019 tax returns.
I responded to the IRS with an apology and an amended tax return showing the 1099-K income and the subtraction of same since it was from personal property not sold at a profit.
The IRS rejected that response and still wants taxes paid on the gross amount of the 1099-K.
I sold my personal musical equipment on Reverb at a loss to help pay divorce settlement costs.
How do I appease the IRS?
