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Author Topic: Were Expanding to America. Important Tax and Withdrawal Changes for All Authors  (Read 14074 times)

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« Reply #25 on: December 27, 2015, 18:13 »
+3
I deactivated my portfolio at the start of the year and I don't regret it.

So did I. Happy to be free of Photo Dune and Envato's selfishness.


« Reply #26 on: December 30, 2015, 14:46 »
0
I believe there are strict reporting laws, and I seriously doubt it would be legal in the US to 1099 someone for money they never received.  That's what I think they mean by excluding the buyer fees.  If they expand to US their accountants will have to follow US laws when doing 1099s.

« Reply #27 on: December 30, 2015, 14:53 »
0
...That's what I think they mean by excluding the buyer fees.  ...


The buyer fee isn't the same thing as the seller fee.

http://marketblog.envato.com/news/buyer-services/

They appear to be saying the 1099 will be for the item list price minus the buyer fee - so the author fee, aka Envato's commission - is included even though that money never came to the author. No other agency does this - our 1099s cover the royalties we actually receive, not some fictional amount.

If I hadn't already left PhotoDune when they started this nonsense with the VAT changes - saying they paid us money they never did and creating a totally fictional notion of a marketplace when (at least for photos) there were an agency - I'd leave them now.


« Reply #28 on: December 30, 2015, 14:59 »
0
...That's what I think they mean by excluding the buyer fees.  ...


The buyer fee isn't the same thing as the seller fee.

http://marketblog.envato.com/news/buyer-services/

They appear to be saying the 1099 will be for the item list price minus the buyer fee - so the author fee, aka Envato's commission - is included even though that money never came to the author. No other agency does this - our 1099s cover the royalties we actually receive, not some fictional amount.

If I hadn't already left PhotoDune when they started this nonsense with the VAT changes - saying they paid us money they never did and creating a totally fictional notion of a marketplace when (at least for photos) there were an agency - I'd leave them now.


But can they do that legally?  I am not an accountant and don't study tax law, but this sounds like it would be illegal.

« Reply #29 on: December 30, 2015, 15:10 »
0
I have no idea what the guidelines for 1099s require (you can read them below, but I really don't know if what Envato's doing is OK).

Someone would have to challenge what they are doing in court to get them to change it. Given the costs of doing that, who earns enough there to want to spend the money on lawyers?

https://www.irs.gov/instructions/i1099msc/

« Reply #30 on: December 30, 2015, 15:16 »
+1
The amount of your 1099 must match the amount you received - exactly.

Years ago, I had an issue where a client paid less than what was on the 1099. A call to the IRS got it straightened out quickly. Within two weeks, I had a corrected 1099. Your income (for taxes) is based on what you actually received. An incorrect 1099 does not change your tax obligation.

« Reply #31 on: December 30, 2015, 15:35 »
0
I am extremely uncomfortable with their plan to 1099 us for their commissions.  My tax guy will likely twirl in his chair if a 1099 for money I never received arrives.  I am seriously considering removing my material.  I hope they fix the situation.
« Last Edit: December 30, 2015, 15:43 by trek »

« Reply #32 on: December 30, 2015, 23:38 »
+1
The amount of your 1099 must match the amount you received - exactly.

Years ago, I had an issue where a client paid less than what was on the 1099. A call to the IRS got it straightened out quickly. Within two weeks, I had a corrected 1099. Your income (for taxes) is based on what you actually received. An incorrect 1099 does not change your tax obligation.

Very good to know.  Thanks for clearing that up and for telling how you handled it.  Probably will help a lot of people.

You listening Envato?  You can't just make up you own rules.  If you try and stick your contribs with YOUR TAX BILL. you will run afoul of the IRS and get to start your North American experience with a big fat audit.  Good luck with that.
« Last Edit: December 30, 2015, 23:43 by PixelBytes »

« Reply #33 on: January 01, 2016, 08:15 »
0
Maybe cos its the biggest market in the world?

wishful thinking; I'm afraid -- even the U. S. acknowledged last year that the biggest market is now China, or did you only mean "biggest for media"...? The latter may still hold true, though it remains to be seen how long this situation will continue.

When and because "expanding to America" -- or rather the U. S., because there is no such thing as FATCA, excessive AML and similar "compliance" throughout the rest of America (these idiotic attempts at Freedom only exist in Empires like the U. S. or the EU-degraded Old Continent) -- means more burdens of compliance for all of us, I'd rather pass that entire Envato thing.

-- Cliff
« Last Edit: January 01, 2016, 09:29 by HiCliff(s) »

« Reply #34 on: January 01, 2016, 09:33 »
+1
I have no idea what the guidelines for 1099s require (you can read them below, but I really don't know if what Envato's doing is OK).

Someone would have to challenge what they are doing in court to get them to change it. Given the costs of doing that, who earns enough there to want to spend the money on lawyers?

https://www.irs.gov/instructions/i1099msc/

leaving us with "only" the market to fix this mess (though the market ultimately is the more effective -- and better anyway-- "weapon")!

And exactly what are they getting right in Australia anyway?! Just take a good look at Symzio, Envato, and Freelancer (outisde microstock), let alone overall Aussie politics, e g when it comes to Freedom of the Press, to bending-over-backward for the U. S. empire, to persecution of their very own Julian Assange and WikiLeaks, or toward "finding Satoshi Nakamoto" (again)... Mostly !d!ots, seriously.

Seen enough, wouldn't touch with a ten-foot pole.

-- Cliff
« Last Edit: January 01, 2016, 09:49 by HiCliff(s) »

« Reply #35 on: January 01, 2016, 09:40 »
0
sorry -- no proper Delete function for fixing typos here!!
« Last Edit: January 01, 2016, 09:50 by HiCliff(s) »

« Reply #36 on: March 19, 2016, 01:15 »
0
I am extremely uncomfortable with their plan to 1099 us for their commissions.  My tax guy will likely twirl in his chair if a 1099 for money I never received arrives.  I am seriously considering removing my material.  I hope they fix the situation.
Guys, do you know if the same problem (Envato issuing 1099-MISC to us including THEIR commission) applies to VideoHive as well? My understanding is that Envato & VideoHive are sister companies, right? Do I guess right that VideoHive would be doing the same trick with theirs 1099-MISC to us? 

« Reply #37 on: March 19, 2016, 01:53 »
+3
Talked with my CPA about this when he was working on my taxes.  His take is that what Envato plan to do is flatly illegal and whatever US accounting firm they use will explain this to them. If not, the IRS will look into it if contributors report it.

 My accountant guessed that by the time they have to send us our 1099s for 2016, they will be doing them right.  If they were really just a platform and we were doing the sales ourselves, there would be no need for 1099 and we would report it as other income.

« Reply #38 on: March 19, 2016, 03:03 »
+1
@PhotoDude
This crap applies to VideoHive as well. Envato is not a sister company of Videohive. All marketplaces they have are simply all "Envato".

« Reply #39 on: March 19, 2016, 03:09 »
0
Correct. Not sister companies, Envato, the actual company, is made up of lots of smaller sites including videohive.

« Reply #40 on: March 19, 2016, 03:11 »
0
The amount of your 1099 must match the amount you received - exactly.

Years ago, I had an issue where a client paid less than what was on the 1099. A call to the IRS got it straightened out quickly. Within two weeks, I had a corrected 1099. Your income (for taxes) is based on what you actually received. An incorrect 1099 does not change your tax obligation.

Very true! But it does give opportunity to the issuer (client) to grab some extra money for themselves via claiming less income ... for example, you received more than showed on 1099.
Would you call IRS then?  ;)

« Reply #41 on: March 19, 2016, 09:03 »
+1
Peoples are complaining but no one is closing his account at envato.
I use to get 9$ per 4k clip and now only 7$ with their tax crap.
Removed 70% of my pirtfolio and wait for some change.
Otherwise i will close my account there.


 

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