How to prepare a summary statement for clothing resale sales - 1099-K requirement help?

Thanks for explaining! Do I need to include receipts with this summary statement? I have most of my purchase receipts but definitely not all of them because I buy from thrift stores and yard sales sometimes.

You don't need to include the actual receipts with your summary statement. The statement itself is just the organized record of your transactions. You should keep all receipts you do have in your personal records in case of an audit, but they don't need to be attached to the summary statement. For items without receipts, you should have documented a reasonable estimate of what you paid at the time of purchase. The IRS understands that resellers sometimes deal with cash purchases from places like yard sales, but you should have some system for tracking those costs.

How accurate is this service though? I've tried other tax tools before and they missed some important deductions for my small business. Does it actually understand the specific needs for clothing resellers?

I'm curious about the process - do you have to manually input all your sales data or can it pull from platforms like Poshmark/eBay? I have hundreds of transactions to deal with and manually entering everything would take forever.

It's been incredibly accurate for my clothing resale business. The AI actually specializes in understanding different business types, and it correctly categorized all my inventory purchases, shipping supplies, and even partial home office expenses. It even explained which deductions were specific to resellers versus general business deductions. For your question about data import, you can upload CSVs or spreadsheets from most selling platforms like eBay, Poshmark, Mercari, etc. I just downloaded my sales reports from each platform, uploaded them, and the system organized everything. It saved me days of manual entry, especially for my 300+ sales last year.

Wait, how does this actually work? I thought it was impossible to get through to the IRS without waiting hours. Is this some kind of premium service where you pay to jump the line?

Yeah right. I've tried EVERYTHING to get through to the IRS and nothing works. There's no way this actually gets you through to a real person. Sounds like a scam to me.

It's actually pretty straightforward - they use a system that navigates the IRS phone tree and waits on hold for you, then calls you when they get a real person on the line. It's not jumping any line, just saving you from having to sit there listening to hold music for hours. No, it's definitely not a scam. I was skeptical too, but it legitimately works. I got connected with an agent who answered all my questions about summary statement requirements for 1099-K reporting. The IRS lines are absolutely still terrible, but this service just handles the waiting part for you.

Do you include things like gas expenses for going to thrift stores and yard sales on this same statement? Or are those tracked separately?

I track those separately as business expenses rather than including them on the sales summary statement. The summary statement is specifically for showing your inventory's cost basis and sales prices. Transportation costs, supplies, platform fees, and other business expenses should definitely be deducted, but they belong in different sections of your tax return. I keep a separate spreadsheet for those business expenses categorized by type (transportation, office supplies, shipping materials, etc.).

This is terrible advice. The IRS absolutely can and does audit small businesses, especially with the new lower 1099-K thresholds. A summary statement needs to show your basis for claiming costs against specific income. If you get audited with just "total sales" and "total costs" with no breakdown, you're asking for trouble.