Originally Posted by
Trinob
My thoughts are even if you do get a 1099 from Amazon for say $80000 through their system. You also have payments of $80,000 if you keep the receipts/credit card statements. By the the time you add in fees of 1.75% you technically would have a loss of $1400 that you could declare.
But then again this is just conjecture on my part.
Go ahead and try that, see what happens. If you are 1099-K'd, you will have to put it on your taxes. Consider this scenario:
1. A person who never has filed a Schedule C files one with $80,000 of revenue. Returns with Schedule C are more likely to be audited, anyways.
2. The same schedule declares $80,000 cost of goods sold and an additional $1400 as fees expense, resulting in a loss of $1400.
3.
Profit! Audit!
4. You get the fun experience of explaining your business that has a purpose of..... sending money to yourself, at a cost. Good luck! Sure looks like money laundering to me, and some other feds might be interested...