Once again Shopify delays 1099-K forms - This time til end of Feb!

Accounting & Taxes
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Here we go again this year… @Shopify_77 decides to fail to issue 1099-K forms and claims they received an extension until the END OF FEBRUARY!!!
See below my chat with them. Absolutely proposterous. As an S-Corp, I must file by March 15th. This gives me little to no leeway to prepare our taxes.

After 15 minutes in the line…
ME: How much longer???

SHOPIFY: I’m sorry for the wait. I know your time is valuable. I don’t have an exact time, but I assure you that a Support Advisor will be with you as soon as possible. In the meantime, feel free to ask me any other questions you might have about Shopify. I’m here to help!

SHOPIFY: An advisor has joined the chat

**SHOPIFY:**My name’s Caleb, your Shopify Support Advisor!

ME: Where is my 1099-k?

ME: It’s past the deadline to issue them per US IRS guidelines.

SHOPIFY: Hey Rick! Hope you’re doing well.

ME: Not really.

SHOPIFY: The 1099-K’s for 2023 are not yet available. Typically, 1099-K forms for transactions processed in the previous calendar year are due to be delivered to merchants on or before January 31st as you have mentioned. However, Shopify has obtained a filing and delivery extension. As a result, we expect to deliver the 2023 1099-K forms to merchants by the end of February 2024. On a side note, to be eligible for the 1099-K form, you need to have more than 200 transactions and more than $20,000 USD in gross payments during the calendar year.

ME: I’m having to delay tax preparations

ME: That’s unacceptable.

ME: I would like to see a formal letter of issue from the IRS stating this.

ME: I am VERY eligible.

ME: My taxes are due March 15 as a corporation and a delay is not possible.

ME: Hello?

ME: I am not a simple LLC and I MUST file by March 15th. The timing you have proposed will not allow adequate time to prep.

ME: Are you still on?

SHOPIFY: I do understand you’re looking to meet the deadline. I am just going to confirm if we have a formal letter or not.

SHOPIFY: I’ve confirmed we don’t have a formal letter to provide you, but the information I provided about the extension is accurate.

ME: Then how am I to believe this?

ME: This is a MAJOR issue that you’re causing MY BUSINESS and will have MAJOR repercussions for ME.

SHOPIFY: I hear that this isn’t ideal for your circumstances however the 1099-k forms are looking to be delivered by the end of February.

ME: It’s not about being ideal. It’s a LAW to file by a date and if I miss it I SUFFER the consequences. YOU all are causing the issue.

ME: End of Feb is not acceptable.

ME: Please pass me to a supervisor.
SHOPIFY - THEY NEVER RESPONDED

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I’m irritated about this as well. Last year, the 1099 was made available on 2/4/23. I keep checking in Payouts/documents every day to see if it’s been posted. If they don’t send til 2/29, we literally will have 15 days for tax person to complete and submit. Ridiculous.

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I’ve been doing the same. Been checking everyday and everyday it’s nothing. Literally just waiting on the 1099 from Shopify to proceed with my accountant..

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Did anybody ever get their 1099?

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nope…unacceptable

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still waiting…

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I reached out AGAIN to Shopify support yesterday, and they are still maintaining that the 1099s would be delivered on 2/29. Magically, on the same day (the very last day of their IRS extension) they will upload 1099s to 1 million+ store owners! Thanks for the anxiety and stress this is causing, well done.

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Shopify says I do not qualify for a 1099 and that is so not true. I don’t understand what is going on. I am letting my accountant know and move on with my taxes.

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What reason did they give you? If you made more than $600, they need to provide you with a 1099.

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They only told me I do not qualify. Would not tell me why. I could not take their terrible answers anymore and gave up.

We sold almost 100k last year

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I pretty much got the SAME response word for word. Using AI or a preprogrammed response. Not even a real person. Totally disrespectful to their customers. Unacceptable.

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I just did this and had to manually add all of my sales. Took forever. Can’t wait much longer for tax reasons. Ridiculous.

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@Shopify_77 It’s now the 29th of February. Where are the 1099-K’s at?

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Hi Vincent, this is weird… it looks like they deleted my reply to you yesterday. I sent you excerpts from a Shopify bulk email that was delivered 2/9/24. It said any store that did $20K+ would “qualify” to get a 1099. So correction on the $600! But STILL waiting… here we are LAST DAY OF FEB. Let me guess, they’re waiting until 11:59p tonight?!

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Technically it is $20k AND 200 transactions in order to get a 1099. Amazon, eBay and Walmart all have no problem getting them to me on time or even early. The only thing I can think of is that they are no counting the transactions for each purchase and maybe just when the pay the money to us but I really have no idea.

I talked to my accountant and he told me as long as I have my income from Shopify reported in my Quickbooks accounting not to worry about it.

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Correct. But each order is a “transaction,” right? We had thousands of orders last year, and they still have not posted my 1099. We are second guessing ourselves here. This is not an “us” issue - this is a Shopify issue. I had my tax prep get started yesterday. I have Finaloop software which is essentially like QuickBooks but designed for ecommerce businesses. They have access to see my year-end reports including P&L. There is the gross sales, and then net sales (after returns, discounts, etc). My best guess is that they will use the higher/gross number to go off of, in lieu of the 1099. Best wishes!

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I am chatting with an Advisor and they can’t even say that we will get them by the end of today and “they are not able to provide exact time frames”

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Wow. This is a major debacle.

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I got my 1099k this morning. I am glad I went in and manually entered all sales myself because I’m certain that Shopify used the gross amount and not the net. I did not make as much as the Shopify 1099k form says. Be careful! I will be reporting my number of net sales.

In other words, they are accounting for fees as part of what you “made” even though those are deducted from the profit sale. Always use net.