I received two emails today concerning tax records.
To comply with tax regulations, Shopify Payments is required to report your 2014 sales figures to the IRS. In order to do this, we need the legal business name and Tax Identification Number (TIN) that you have on file with the IRS.
Unfortunately, the information you have currently provided does not match IRS records. In order to avoid fines and penalties, you must update this information as soon as possible. You can do this from your payments settings page.
Tip: If you are a sole proprietor, your legal business name is likely your full name as it appears on your Social Security card and your Tax Identification Number is your SSN.
I am based in the UK. I'm from the UK and my store trades from the UK - why am I getting emails concerning the IRS?
I received an email today saying:
To comply with tax regulations, Shopify Payments is required to report your 2020 sales figures to the Internal Revenue Service (IRS).
The tax details you’ve provided don’t match the Internal Revenue Service’s (IRS) records. In order to avoid fines and penalties, you must update this information as soon as possible.
-First, what fine is there?? Is Shopify fining me? If so how much? Secondly, according to help.Shopify.com..
As a merchant, you are required to abide by all applicable regulations, including tax reporting. Depending on your jurisdiction, Shopify Payments might also be required to report your sales to the local tax authorities.
The United States, Australia, and Europe have unique tax reporting requirements.
In the United States you are required to submit a 1099-K form to the IRS if you meet either of the following criteria:
-I didn't process more than $20,000 or more than 200 transactions this year. It says "Shopify payments might also be required to report your sales to the local tax authorities". ??not Federal (IRS). Regardless I believe I didn't meet the threshold.