1099-K Threshold Isn’t an Exemption from Reporting Income

A seller on Amazon bought items through Walmart, Home Depot, and eBay, the sales of which were handled through a drop-ship model. Amazon issued him Form 1099-K for the more than $29,000 it processed. He didn’t report the income because he thought he shouldn’t have received the form. The Tax Court said all the income had to be reported. He received it, and he had no substantiation for his cost of goods sold. #IdeaoftheDay