Q: IS A PSE ABLE TO REPORT INCOME ON A 1099-K THAT THEY DID NOT TRANSFER TO YOU IN A PAYMENT SETTLEMENT YET?
I AM A SINGLE OWNER LLC SMALL BUSINESS FILING AS DIREGARDED ENTITIY WHO RECEIVES A 1099-K FROM AMAZON FOR RETAIL SALES TRANSACTIONS. AMAZON "A payment settlement entity (PSE) must file Form 1099-K for payments made in settlement of reportable payment transactions for each calendar year. A PSE makes a payment in settlement of a reportable payment transaction, that is, any payment card or third party network transaction, if the PSE submits the instruction to transfer funds to the account of the participating payee to settle the reportable payment transaction." REPORTED 17000 FOR THE MONTH OF JULY EVEN THOUGH THEY HAVE HELD $8000 AND HAS NOT SUBMITTED INSTRUCTION TO TRANSFER FUNDS. ARE THEY STILL ABLE TO REPORT THAT INCOME AS RECEIVED IF I NEVER RECEIVED IT?
A: Yes. They're your funds, even though you haven't received them yet you have a right to them so they're reportable.
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