A 1099-K form simply reports the total amount you have earned on Pango from in a given calendar year. It is similar to the W-2 form you might receive from an employer but reflects your income from merchandise (i.e., book) sales. The amount reported on your Pango 1099-K will include all earnings from sales regardless of if you transferred the earnings to your bank or PayPal account.

Receiving a 1099-K does not necessarily mean you will need to pay taxes on your Pango earnings. The 1099-K form we issue doesn’t calculate your profit or indicate any tax liabilities you may have—it simply gives the total gross sales processed by Pango.
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For example, say a Pango seller sells a book for $10 but they bought it for $22. While Pango would still have to report the full sale amount as earnings on the 1099-K form, the seller would have no taxable income to report since the resale amount was less than the original purchase price. If all the books you sold were at prices below your original purchase price, you may not owe any taxes on your sales at all.

Unfortunately, the Pango team cannot legally provide any specific tax advice and everyone’s individual tax situation is different. We recommend speaking to a tax professional to find out more about your specific tax liability and situation.

In order to submit 1099-K forms to the IRS per legal requirements, we must collect SSNs or ITINs from sellers. To do so, we are asking sellers to complete the W-9 form, Request for Taxpayer Identification Number and Certification. Please note that this form is just a way for us to collect this information from you and is not a request to the IRS for a new SSN or ITIN. Maintaining accurate information from our sellers ensures that all accounts are in legal compliance.

The system we use to store and process all tax information is entirely encrypted and secured to the highest standards of the payment and information security industry. At no point will anyone have direct access to any tax information you submit through our site and the entire process has been thoroughly tested and certified.

Your 1099-K form will be posted on the Tax Center section of your account on the Pango website. If you need assistance logging into your account, please contact our team at support@pangobooks.com.

If you hit the threshold and don’t provide this information, your payouts and account status may be temporarily put on hold. Sellers will have through December 2023 to submit their tax information.

We ask that all required sellers submit their tax information by the end of the year. We will submit and provide the 1099-K forms by the end of January 2024.

You may notice that on some orders, we have added a sales tax charge that buyers pay when checking out. This tax charge is added with orders shipping to states where we are required to file sales tax and is done automatically. If you are a Pango seller, there is nothing you need to do as it relates to the collection of sales tax on orders. We handle this entire process.

If your Pango shop is your full-time job, it may be considered self-employment by the IRS. If this is the case, you may owe additional taxes on your earnings. If your Pango selling is a hobby or side project, it most likely does not qualify as self-employment. If you are unsure about the above, we highly recommend seeking the advice of a tax professional. You can find more information on this topic from the IRS here.

The reporting threshold for which we are required to submit a 1099-K form is calculated for sellers through their 80% earnings across their sales in tax year 2023.