The federal government imposes tax reporting requirements on companies like Outdoorsy. This means we must notify the Internal Revenue Service (IRS) of reportable payments that just about everyone receives from our platform.
Without your tax info, we can’t do this. But, that doesn’t mean you’re off the hook.
By law, if Outdoorsy doesn’t have your tax information, we must withhold at least 24% of your reportable payments as income tax. We remit this to the IRS for you.
You can add your tax information in the Account area of your Dashboard, on the Payout preferences or Tax docs tab.
Automatic withholding (24% of your reportable payments) begins January 1, 2022.
Yes, once you provide your tax information, Outdoorsy will stop withholding on future payouts.
We remit the money to the IRS in your name, and you may be able to treat the withholdings as tax payments made by you. However, you may face difficulties given that the payments we remit aren’t tied to your taxpayer identification number.
That’s why, even if withholding has started, you should provide your tax information to Outdoorsy.
You should consult with your tax professional for more information.
It depends on when the withholding occurred and when you submitted your tax information. However, generally, Outdoorsy is prohibited from returning withheld amounts.
It depends on how much you receive in reportable payments each year:
Yes, we must notify the IRS of your reportable payments, starting in 2022. We’ll also prepare a 1099-K for you and send a copy to the IRS.
We may not report anything to the IRS. You should consult with your own tax advisers to determine whether you need to report any activity on your income tax return.
If you’ve been active on Outdoorsy and have never come across these tax requirements, it’s because some of them are new for 2022.
ARPA introduced the $600 threshold for tax reporting. This goes into effect on January 1, 2022.