UNICORN AND FORM 1099-K
Unicorn Auctions is required by law to issue all consignors with a transactional value over $600 per calendar year, a Form 1099-K which includes the gross amount of all paid out transactions and will not include any adjustments, for example, credits, discounts, fees, refunds, reconciliation, or any other adjustable amounts. This means that the gross amount reported on your Form 1099-K may not be the final reportable amount on your tax return. Please consult your tax advisor with any questions you may have about your specific situation.
Going forward from 2023, the IRS lowered the Form 1099-K minimum reporting threshold. Starting on January 1, 2023, IRS regulations require all businesses that process payments, including marketplaces like Unicorn Auctions, to issue a Form 1099-K to sellers who receive $600 or more in gross payouts per calendar year. If you receive $600 or more in gross payouts over the course of the 2023 calendar year, we'll provide a Form 1099-K to you by January 31, 2024. Your 2021 and 2022 tax obligations will not be affected by this change.
Once you reach $600 in sales or if you are consigning an item or items that totals in $600 or more in sales volume, we'll need to collect your Social Security Number (SSN) or Employer Identification Number (EIN), or Individual Tax Identification Number (ITIN) via a W-9 webform and secure link with Signeasy. This information is required for all sellers with sales over the threshold amount ($600 for 2023). If you do not provide us with an SSN, EIN, or ITIN, your payouts will be put on hold until the W-9 document is filled out with all required information, signed and returned to us. If you have any question regarding 1099-K feel free to reach out to us here.
2023 Changes to the
IRS Reporting Threshold