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Amazon Vine's new IRS policy. Thoughts?

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Divia
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Amazon Vine's new IRS policy. Thoughts?

Post by Divia » Thu June 25th, 2015, 7:05 pm

I know many of you are in Vine, much like myself. What are your thoughts on their new policy?

Personally I am worried. I get mostly ARCs but do not tell me those are worth 20 bucks a pop. And I dont want to be taxed on something that isn't a finished product. People are saying in the forums that the form they give you makes the IRS want to audit you more. I have no information on that.

I seriously don't know what to do. It feels like this is rushed and that Amazon hasn't a clue as to what is going on.

Thoughts ?
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MLE (Emily Cotton)
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Interest in HF: started in childhood with the classics, which, IMHO are HF even if they were contemporary when written.
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Preferred HF: Currently prefer 1600 and earlier, but I'll read anything that keeps me turning the page.
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Post by MLE (Emily Cotton) » Fri June 26th, 2015, 4:10 am

Sounds like more government paperwork. I'm starting to wonder how people who aren't tech-savvy or very bright are going to get by in this new world of a million rules.

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Misfit
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Post by Misfit » Fri June 26th, 2015, 1:20 pm

I've been watching the threads at the vine forums. I can see how Amazon must have been pressured to do this, I can't imagine taking on such an extra load of accounting otherwise. It's how they will calculate the fair market value that's the sticking point for me. Sure, I own it after did months, but if I can't sell it, it has no market value to me.

I can't imagine the ARCs have any value, they are not produced for resale ever. If I ordered a book and got one, I'd challenge the sale.

I don't request books from Vine anymore, not since the 100% policy went in place. My moods are too fickle and I don't like the grief of a dnf review or forcing myself to finish a book I hate. I wait for library.
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Divia
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Post by Divia » Fri June 26th, 2015, 2:56 pm

I pick up books that are on my wishlist and then are on my vine page, but that seems to be less and less these days.

Someone pointed out vine often feels like a big yard sale, and the good items from years ago are now gone. I agree with that. I feel the quality of the prodcuts isn't there as it once was.

I'm leaning towards backing out. I dunno. I don't feel comfortable with being taxed on items that Amazon magically figures out the FMV to after the fact. The unknown is what worries me. I dont have a lot of money laying around so I can pay both state and federal taxes.
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Misfit
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Post by Misfit » Fri June 26th, 2015, 4:37 pm

[quote=""Divia""]I pick up books that are on my wishlist and then are on my vine page, but that seems to be less and less these days.

Someone pointed out vine often feels like a big yard sale, and the good items from years ago are now gone. I agree with that. I feel the quality of the prodcuts isn't there as it once was.

I'm leaning towards backing out. I dunno. I don't feel comfortable with being taxed on items that Amazon magically figures out the FMV to after the fact. The unknown is what worries me. I dont have a lot of money laying around so I can pay both state and federal taxes.[/quote]

I have gotten some really cool stuff in the last year or so, nice high-end vacuums and a lovely set of noise cancelling headphones, let alone the big TV. I don't plan on opting out, but I will be more choosey over some choices, especially until the FMV is clarified. Lots of times suppliers send out one energy bar/beverage, etc. even though the product is sold by the case on the Amazon page. Are they going to make the FMV of the single item we received, or the normal sell price by the case?
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Divia
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Post by Divia » Sat June 27th, 2015, 11:45 pm

I've gotten nothing like that. I have over the past years gotten some cool things, but since the change I have only had a few high ticket items. A printer(which was the same one I got before) and a portable AC unit. That one was pretty pimpin. However, thats about it. Most of its food and beauty products

I havent been thrilled for a while, and sometimes I feel like I am just taking stuff to do it. But now that I get charged sales tax.....I dunno if its worth it anymore. I dont feel like paying sales tax on granola bars or ARCs
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Post by Misfit » Sun June 28th, 2015, 4:09 pm

I don't believe they are charging sales tax, just preparing to report to the IRS the gains for income tax purposes. Sales tax is at the state level, at the point of sale. I've filled out the form (a W-9), and will just lay low and see how things go. Speculation is wild at the Vine forums at the moment.
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Divia
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Post by Divia » Mon June 29th, 2015, 4:21 am

I meant income tax but typed the wrong thing.

Either way I dont want to pay. I already get screwed cause I'm a single chick, no kids, no house and an income that the IRS thinks needs to be taxed to death. So then we add this new stuff on and I just don't feel good about it.

And I don't feel comfortable giving my SS# to amazon. Clearly I'm not alone on that one since many ppl are bulking at that one.
Since Amazon can't figure out how they are going to determine FMV and we dont know how this is going to slap us at tax time, and since Amazon is being very mute about it all I'm just not feelin' comfortable.

There will be ppl who stay, as you are. And I'm sure they will get people to fill our spots when we leave. But I dont want to be blindsided by the IRS, and since Amazon can't figure out how they are figuring out FMV I think I'm outtie.
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Misfit
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Post by Misfit » Mon June 29th, 2015, 2:55 pm

I usually end up with a healthy refund, so I'm not too concerned. My state doesn't have a personal income tax, they get their $$$ via sales tax. Did you see the email last night that we're able to transfer (i.e. sell, donate) anything after six months now? And if I read it correctly, grocery like items (and I assume cosmetics) would have a FMV of zero, since we've consumed them.

I can understand some like you not wanting to stay in, but I'm game, just will go cautious if something shiny comes in. It might be fun to play with a high end pressure cooker or blender, but I know I'd get bored with it eventually since I'm not much in the kitchen for the most part. If it was something that I would have purchased anyway, a $30 tax obligation is a lot cheaper say then a $1000 TV.

I think I've seen at least one commenter that's all over those threads pissing and moaning about awful Amazon is for doing this. I can't imagine going to all these lengths (seriously, that's a lot more work for them) unless they were forced by the IRS. Other companies would have just tossed in the towel and dumped the Vine program altogether.
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Divia
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Post by Divia » Tue June 30th, 2015, 2:27 pm

I'm in NY. They tax us to death.

There was no other way. They have to give us rights to the items if we are paying taxes on them. You can't say pay the taxes and then give it back. It doesnt work that way.

Who knows who started this. The IRS, Amazon? Dunno. But I am not happy about how it rolled out. There just isn't enough information and they haven't tried to calm anyone's concerns about SS#.

Oh well. I started in 08. its been a good run. When we had the old vine, I got a lot more books I wanted, I got a cool shinny things, and it was just more pleasant. VFA has produced one book for me.

Well today is the last day. We shall see what happens. Will they allow me to review my other items? I have currenly 5 checked out, one is a facial cream, but I needed a month to review it because it says it gets rid of wrinkles in that time. Or am I like so many others going to be vanished! :eek:
News, views, and reviews on books and graphic novels for young adult.
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