I own a small reselling business which operates mainly on Amazon. I filed my own taxes for the business for the year 2019 and just received a proposed change, since I neglected to include form 1099-K provided to me by Amazon. I'm positive I don't owe the amount they proposed I do, so I'm putting together documentation to prove I don't. My issue is purchases I made throughout the year. I have all paper receipts from stores I purchased inventory from, but I'm not sure if I should just send all the receipts in, or take pictures of them/scan them, or something else. Is there a more streamlined way to show all my purchases so I can deduct them from the gross transactions on the 1099-K?
USA Received CP2000 for my small business
- Thread starter rb2323
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DTA93433
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I would presume that if you had no ending inventory; all of your purchases would have already been accounted for on your 2019 return as COGS (Cost of Goods Sold) - netted against Gross Sales. Check all your receipts and documents to verify COGS first. If there is a shortage in COGS; then by all means submit COPIES of everything with the CP2000 Notice. If COGS is correct, then its only a matter of matching the 1099-K reported to the IRS vs. what was reported on the return.