Join us in advocating for Congress to raise the 1099-K online sales reporting threshold.
As of January 1, 2022, marketplaces like Reverb are required to report a seller’s sales via a Form 1099-K if they sell $600 or more on the platform in a calendar year. Previously, a 1099-K was only required when a seller hit their state’s threshold or the federal threshold of $20,000 in sales and 200 or more transactions in a calendar year. You can learn more about the US tax reporting requirements for 2022 here.
How we’re advocating for change in this law
This new IRS reporting requirement disproportionately burdens casual sellers who will be required to file unnecessary, burdensome, and confusing tax forms for used music gear sales that aren’t ultimately taxable. That’s why we’re advocating for Congress to raise the $600 reporting threshold.
On April 27, 2022, we joined other leading online marketplaces to form The Coalition for 1099-K Fairness, a coalition committed to protecting casual online sellers from unfair tax reporting burdens. We want policy makers to understand the negative impact this new reporting requirement has on musicians that use Reverb to resell their used gear.
"I play in a band and gig often, and using Reverb to buy and sell guitars helps me stay creative and keep my playing fresh. I can only afford to have a few guitars at a time, so if I’m not playing one, I sell it on Reverb so that I can try something new. I’m not selling guitars to make money. This new reporting requirement would create a huge hassle for me, especially when it comes to finding original receipts and proving that my gear was sold at a loss."
– John B.
How you can help
If you are a casual seller and you want to help us advocate for a change in this law, you can share your story below. We want to educate policy makers on the benefits of reselling music gear online —whether it allows you to try new gear and expand your playing or helps you make ends meet—and the negative impact this new threshold will have on many music makers.
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