Monthly sale report are different from 1099k
Hi everyone,
I need some assistance with the monthly sales reports I've generated from Amazon for our CPA. Here’s what I've done so far:
Navigated to Payments > Transaction View and set a custom date range.
Selected both "Standard Orders" and "Invoice Orders" for the Account Type.
Chose "Order Payment" for the Transaction Type.
After generating these reports, the monthly sales figures appear consistent across both account types. However, there's an issue: the total annual sales on the 1099-K form from Amazon show an excess of $3000-$6000 compared to our monthly downloads.
I've contacted Amazon, but they only advised me to download the reports again, which hasn't resolved the discrepancy. Since Amazon does not offer phone support for tax issues, I'm turning to you for advice on which figures might be correct, or how to proceed further to reconcile these differences.
13 replies
Seller_nRFmxiQg4EGrw
The 1099K from Amazon accounts for not only your sales, but the sales taxes collected under the Marketplace Facilitator laws; these taxes are not included in your sales reports.
Page 2 of the 1099 spells this out, and lists the amount. These amounts should be subtracted from your income, as it was never yours to begin with. AFAIK, no other online marketplace does it this way.
Micah_Amazon
Hello @Seller_0iKdKBBgSR8N0,
Thank you for your post. i wanted to follow up and see if you have additional questions or still need assistance. I want to shout-out @Seller_nRFmxiQg4EGrwand her amazing post explaining in details how the reports should be read and understood.
If you require additional assistance, please open a seller support case and share the case Id in this thread.
Have a great week.
Cheers,
Micah
Seller_WtOwWhtSrFjva
I would go by the 1099 for tax purposes.
Monthly reports are not exactly monthly.
They bleed over a bit into the previous and next months figures.
Why? Refunds, fee and so on will change the figures.
And the 1099 is the total amount taken in.
I believe the monthly only counts what was paid to you.
Seller_bzNkMfBBSBgU0
You are 100% correct and you should congratulate yourself for understanding the problem. Amazon runs their books on accrual accounting which takes into account your invoiced orders as an accounts payable and as revenue to you. If you are on cash accounting as 99% of sellers on this forum you should not use the 1099 you should go to payment dashboard => reports repository and pull out all your transactions. From here you have to filter for only the amazon payouts and this is your actual revenue on cash accounting. If you don't do this be prepared to pay a nasty tax bill on revenue you never received. As an accountant I can tell you it is a clever hack amazon has to pawn off their taxes to you. Best of luck on your business.
Seller_nRFmxiQg4EGrw
I suspect that you are right. It's not as if they make it obvious; you have to drill down into page 2, which is otherwise just instructions.
And I agree (although I'm no expert), it shouldn't be there. We deal with about half a dozen online marketplaces; this is the only one doing this.
