Apartments.com now requiring tax information

General Landlording & Rental Properties
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Apartments.com now requiring tax information

Mike MalyyPro Member
Investor · Sacramento, CA · Member since 2019 · 44 posts · 38 votes

Hi All,

So I am a very small time landlord and I use Apartments.com (formerly Cozy) to collect payments. This morning I got an email saying that they want my SSN to report any income I get over $600 to IRS. I have always been very skeptical and cautious when it comes to giving my SSN to anyone. I quickly searched recent news, but have only found articles a few weeks old, and even those state that the threshold was raised to $10k. What am I missing? Is this an actual new requirement now or Apts.com just wants my personal information? Did anyone get the same notification on any other platforms? If not, then I am ready to switch to something else. Thanks in advance for your replies.

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Daniel SmythPro Member
Rental Property Investor · Rockford, IL · Member since 2019 · 471 posts · 342 votes
4y

@Mike Malyy

I do not divulge financial information.

The IRS and I know where we stand. It's not the job of an outside organization to be a cop for the IRS.

By the way, Apartments.com is not the only place you can use for your rental leads.

My business is my business.

[email protected]
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  • Mary M.
    Rental Property Investor · Portland OR · Member since 2018 · 2k+ posts · 3k+ votes
    4y
    Originally posted by @Joe Splitrock:

     The reporting laws for PayPal (and other electronic payment platforms) had a threshold of $20,000 or 200 transactions per year, so the change to $600 is significant. This is a big change taking place January 1, 2022. Look at the links I posted in a previous message.

    This is 1099-K, which is credit card and third party payment processors. That means any electronic payment processor is going to be reporting landlords income. As long as your claimed income on your taxes matches what you are receiving, this is no issue.

    The current administration is taking a very aggressive stance on tax enforcement. This electronic payment clause was hidden in the American Rescue Plan passed earlier this year. The "Build Back Better" bill they are pushing through congress has $80B additional funding to increase the size of the IRS. That is $45B just for more audits. The IRS did 500,000 audits in 2020, which was a multiyear downward slide down from 1,500,000 in 2010. Staff and budget in 2020 was down 20% from 2010. 

    Rental payments over $600 have required  on 1099 reporting for years. So the only change here is how that data is collected. 

    0Reply
  • Carolyn Fuller
    Cambridge, MA · Member since 2015 · 651 posts · 736 votes
    4y

    The short term rental platforms have sent me a 1099-K for years, and have therefore, had my SSN.

    The 1099 forms, we as landlords, need to file for our vendors has changed in recent years. We need to file 1099-NEC forms for cleaners, accountants, etc but 1099-MISC for lawyers. More info can be found online: https://www.irs.gov/forms-pubs...

    We, as filers of 1099s, need to collect the TIN or SSN from lawyers we pay and those vendors who aren't incorporated and who we paid via any mechanism other than credit card.

    0Reply
  • Daniel SmythPro Member
    Rental Property Investor · Rockford, IL · Member since 2019 · 471 posts · 342 votes
    4y

    @Mike Malyy

    I would end this service.

    I don't think it is needed to have yet another entity reporting your information to whomever they feel like.

    That letter can SAY this is only for the IRS.

    Who knows what other lists your information will be sent to and how long it will be kept and used?

    Opt out!

    Your financial institutions already feed the IRS.

    Your tax person is the only person who may need your ssn.

    I use an IEN from the IRS to get tax breaks on purchases and to register or apply for strain programs and licenses. Never my personal social security number!

    [email protected]
    2Reply
  • Spencer Barker
    Real Estate Investor · Sheridan, IN · Member since 2014 · 8 posts · 10 votes
    4y

    Thanks for clearing up the $600 is not new for 3rd party only for banks that Biden is trying to push thru. If companies like Cozy, Apartments.com and others have been required by law for years to send out these 1099 for over $600 and I've been using these for couple of years now, why haven't I ever received a 1099 nor been asked to give my SSN or tax ID number until now? 

    2Reply
  • Jack Morris
    Member since 2019 · 4 posts · 1 vote
    4y

    @Mike Malyy

    Thanks for starting this discussion. I was taken aback by their email as well. I don't know why they would need our SSN or tax ID now?

    Does anyone have another rental management site they like?

    0Reply
  • Michael P.
    Marlton, NJ · Member since 2017 · 129 posts · 16 votes
    4y

    Same here, got the email other day.

    Though as others mentioned, they couldn't link the related information.

    Books are straight as #2 pencil.  Lets do this.

    1Reply
  • William Arrington
    Gainesville, VA · Member since 2021 · 82 posts · 72 votes
    4y

    @Mike Malyy

    Pretty sure these are the changes fro. The build back better bill. They changed the amounts of a few things that have to reported

    0Reply
  • Tim Miller
    Rental Property Investor · Laurel, MD · Member since 2016 · 378 posts · 382 votes
    4y

    @Mike Malyy Yes, this is two different issues. What the current administration is wanting, is the your bank will report to the IRS any money received in your account over $600 or $10,000.

    What Apartments.com is doing, is required by the IRS and has been for decades. Example: you hire someone to mow your lawn. You pay them $25 a week and they mow it for 26 weeks. You just now paid this person $650.00 and you need to send them a 1099.

    Since Apartments.com is own by CoStar Group, they have to follow these requirements more than a smaller company like Cozy use to be.

    1Reply
  • Joe SplitrockPro Member
    Moderator
    Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
    4y
    Originally posted by @Jack Morris:

    @Mike Malyy

    Thanks for starting this discussion. I was taken aback by their email as well. I don't know why they would need our SSN or tax ID now?

    Does anyone have another rental management site they like?

     Read the entire thread. I thoroughly explain it. EVERY electronic bill pay service is bound by new laws. If you find someone not requesting your tax ID, they will be out of compliance with Federal law. Just Google search "american rescue plan 1099-k". 

    0Reply
  • Carolyn Fuller
    Cambridge, MA · Member since 2015 · 651 posts · 736 votes
    4y
    Originally posted by @Daniel Smyth:


    I use an IEN from the IRS to get tax breaks on purchases and to register or apply for strain programs and licenses. Never my personal social security number!

    That’s the # you need to provide any platform that collects rental payments for you.

    Airbnb and VRBO have been doing this for years. 

    0Reply
  • Joe SplitrockPro Member
    Moderator
    Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
    4y
    Originally posted by @Tim Miller:

    @Mike Malyy Yes, this is two different issues. What the current administration is wanting, is the your bank will report to the IRS any money received in your account over $600 or $10,000.

    What Apartments.com is doing, is required by the IRS and has been for decades. Example: you hire someone to mow your lawn. You pay them $25 a week and they mow it for 26 weeks. You just now paid this person $650.00 and you need to send them a 1099.

    Since Apartments.com is own by CoStar Group, they have to follow these requirements more than a smaller company like Cozy use to be.

     It has not been required for decades. You are referring to 1099-MISC, which is for a contractor or service worker. There are different rules for payment card and third party network transactions that handle electronic payment. They had a threshold of $20,000 or 200 transactions for 1099-K. The 1099-K is for payment processors. The American Rescue Plan, that was passed earlier this year, changed the threshold for electronic bill payment down to $600. This has nothing to do with the size of Cozy versus CoStar. Read the links I provided earlier in the chain and it is explained very well from multiple sources.

    1Reply
  • Rick M.
    Rental Property Investor · Fort Lauderdale, FL · Member since 2017 · 151 posts · 94 votes
    4y

    ApartementDOTcom ever since absorbing Cozy has been nothing but a hassle and endless issues. Now they want to invade your privacy by getting you SSN or EIN. I received the same notification and haven't given them the EIN to any of my properties. I really don't want to, AptDOTcom needs to stay in their lane and mind their own business and not worry about ours.

    I have "attempted" to insert the EIN and received error messages, I have attached pictures, AptsDOTcom doesn't need to know our Tax info, DO NOT COMPLY with their demands, the IRS knows all the information they need, a 3rd party doesn't have the right or authority to enforce such obvious over-reach of power. I won't be giving them my EIN or SSN, if they stop my payments I will be filing a lawsuit.

    0Reply
  • Rick M.
    Rental Property Investor · Fort Lauderdale, FL · Member since 2017 · 151 posts · 94 votes
    4y
    0Reply
  • Rick M.
    Rental Property Investor · Fort Lauderdale, FL · Member since 2017 · 151 posts · 94 votes
    4y
    Originally posted by @Daniel Smyth:

    @Mike Malyy

    I would end this service.

    I don't think it is needed to have yet another entity reporting your information to whomever they feel like.

    That letter can SAY this is only for the IRS.

    Who knows what other lists your information will be sent to and how long it will be kept and used?

    Opt out!

    Your financial institutions already feed the IRS.

    Your tax person is the only person who may need your ssn.

    I use an IEN from the IRS to get tax breaks on purchases and to register or apply for strain programs and licenses. Never my personal social security number!

     THIS ^

    Don't just submit to this BS overreach

    0Reply
  • Rick M.
    Rental Property Investor · Fort Lauderdale, FL · Member since 2017 · 151 posts · 94 votes
    4y
    Originally posted by @Joe Splitrock:
    Originally posted by @Mike Malyy:

    @Daniel Smyth I completely agree with you. I’m always skeptical of anyone who asks for my confidential information without actually needing it to conduct our business. Heck, I don’t even give it to medical offices to verify my insurance coverage and they figure out how to do it still.

    Also, I thank everyone else for chiming in. To be clear, I’m not afraid of IRS as all of my records are straight, but I’m not a fan of Apts.com using this strategy, so I will start looking for alternatives.

     The IRS requires this due to changes that the Biden administration pushed into the American Rescue Act. This is to crack down on gig economy workers who are not paying taxes, so they can increase tax revenue. It affects landlords. This passed earlier this year and effective January 1, 2022, bill payment services such as Apartments.com (using ACH), PayPal, Venmo or ANY other alternative must send the tax payer a 1099-K for payments collected over $600. They are collecting your SSN number because tax payer ID number is required on the 1099-K. Your SSN number is your tax ID number if you operate as a sole proprietor. The only way you avoid this is collecting cash or check. The administration is also trying to push this reporting on to banks for physical checks, but they are meeting resistance. Here are several sources that talk about the change:

    https://newsroom.paypal-corp.c...

    https://www.pwc.com/us/en/serv...

    https://taxmedics.net/the-payp...

    https://cpennies.com/congress-...

    https://www.forbes.com/sites/l...

    They need to be met with resistance, We do our taxes every year and pay our CPAs well, AptDOTcom doesn't need that info Cozy never did and for the past years AptDOTcom hasn't either

    0Reply
  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    4y

    You all pay up now......Brandon needs the $$ for his new 'Infrastructure Plan'

    2Reply
  • Joe SplitrockPro Member
    Moderator
    Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
    4y
    Originally posted by @Rick M.:
    Originally posted by @Joe Splitrock:
    Originally posted by @Mike Malyy:

    @Daniel Smyth I completely agree with you. I’m always skeptical of anyone who asks for my confidential information without actually needing it to conduct our business. Heck, I don’t even give it to medical offices to verify my insurance coverage and they figure out how to do it still.

    Also, I thank everyone else for chiming in. To be clear, I’m not afraid of IRS as all of my records are straight, but I’m not a fan of Apts.com using this strategy, so I will start looking for alternatives.

     The IRS requires this due to changes that the Biden administration pushed into the American Rescue Act. This is to crack down on gig economy workers who are not paying taxes, so they can increase tax revenue. It affects landlords. This passed earlier this year and effective January 1, 2022, bill payment services such as Apartments.com (using ACH), PayPal, Venmo or ANY other alternative must send the tax payer a 1099-K for payments collected over $600. They are collecting your SSN number because tax payer ID number is required on the 1099-K. Your SSN number is your tax ID number if you operate as a sole proprietor. The only way you avoid this is collecting cash or check. The administration is also trying to push this reporting on to banks for physical checks, but they are meeting resistance. Here are several sources that talk about the change:

    https://newsroom.paypal-corp.c...

    https://www.pwc.com/us/en/serv...

    https://taxmedics.net/the-payp...

    https://cpennies.com/congress-...

    https://www.forbes.com/sites/l...

    They need to be met with resistance, We do our taxes every year and pay our CPAs well, AptDOTcom doesn't need that info Cozy never did and for the past years AptDOTcom hasn't either

     You seriously didn't even read the links I provided? Congress changed the rules earlier this year when they passed the America Rescue Act. They apply to every rent payment company. If you want to create resistance, vote for different people in the next election. 

    What company do you use for bill pay that is exempt from Federal law?

    1Reply
  • Kyle Meyer
    Portland, OR · Member since 2020 · 5 posts · 7 votes
    4y

    Hey y'all, I run the software engineering team for what was formerly Cozy and is now Apartments Payments. I'm speaking for myself, not any sort of official company opinion.

    @Mike Malyy and others that have complained about this tax regulation change: I'm with you, this change sucks. Now if you sell something for $601 on eBay, you have to give them your social security number so that it can be reported. You'll then be obligated to keep receipts to prove whether that sale led to a profit or not and potentially pay taxes on the proceeds.

    @Joe Splitrock is right though—this applies to all online payment facilitators and marketplaces. All online rent payment services will need to comply eventually, not process your payments, or start backup withholdings of 24% of your rent. In previous years, including this tax year, the threshold for federal 1099-K reporting was ≥200 payments and ≥$20,000. For this threshold, we've been filing 1099-Ks for years at Cozy, ever since our user base grew and people started qualifying. 

    We're human people over here enforcing these new rules and, as the person with a good deal of responsibility for the software and therefore security of your data, I can tell you we take it extremely seriously. I'm sure the teams at other companies feel similarly.

    1Reply
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