Frozen Account Due to Unverified Tax Information

[#1]

I formed an LLC in the state of MS and obtained an EIN number for this LLC. I correctly updated the tax information on Etsy. However, my shop was being frozen due to unverified tax information. It has been over two weeks and Etsy has been completely responsive to address the issue. I was not even recognized that I have been having this issue on my account. When I wanted to update the tax information with my SSN, I could not do it. I have been asked to update my tax info, but I cannot make any changes there. Etsy is not addressing the issue at all. Any ideas what to do at this point!

[Buntique]

@EpiclesisConsultingwe set up our LLC status on Etsy years ago. I don't know if Etsy still has the same entry screens now or not. I did have trouble with entering the information and had to seek help from Etsy support. At the time I was doing the set up the first screen had to be entered with my personal info including my SSN. After that the screens became ones for business info and on those I entered the LLC business name and the LLC EIN. The one thing that is most confusing is that I had to enter as an individual even though our LLC is a partnership LLC.

The explanation I remember was that the initial info had to be for the account holder and then it switched over to allowing entry of the business info which would be used for tax reporting. Our legal page and 1099 sections do have the LLC EIN and LLC name and address.

It is a shame Etsy does not do a much better job of explaining how things need to be filled out. 

[GrammiesHats]

thanks for your response.  I'll close my Etsy shop before I give them my ss#.  They have access to everything else about me and at this point I don't trust them.  I want to continue to crochet and need an outlet.  I only net enough to pay for materials so I don't want to give away my bank account too.  

Why can't they be accessible to their bread and butter people?

[Octopunx]

I 100% understand this. Why they have decided we "aren't customers" is really baffling. If you'd like to continue selling I would suggest getting an EIN to use for paperwork. It's super easy to set up a sole proprietorship, and once it's done the EIN takes only a few minutes (usually, I don't know how long it might be now). It can take a couple weeks before it shows up in the system Etsy is apparently using so this isn't quite an instant thing. 

[TSCookies]

This happened to us as well.  Woke up to a closed shop late December 2021.  We have been with Etsy since 2009, thus our EIN has been on file with them since 2009.  We have received a 1099-K every year with our EIN from them.  

Turns out, the EIN was fine, but I had my personal first/last name entered, and they wanted the company name.  As soon as I entered the company name, shop was immediately back on line (within seconds). 

I never had to contact Etsy.

[CatStuffCo]

My listings have been deactivated since Saturday when I added my SSN. I got a message that says: "Good news, We verified your taxpayer information, so you can now sell on Etsy!" 

[Octopunx]

@CatStuffCo try requesting a call back or submit an email request.

[TheRedDatesTea]

Had the same issue, entered the EIN and State License # and was told I needed to upload verification document and I did. Meanwhile, my shop is put on vacation mode. I read that if I changed back to SSN, the shop will be 'unpaused', but I've been unable to change back to SSN, the submit button just keeps spinning. This just happened 2 hours ago and I couldn't get a hold of the support. They used to have to call back button but it's not there anymore.

[giftcenter]

That also happened to me! When I wanted to go back to my SSN, it just spun endlessly. I was using Chrome and I did try other search engines too but did not work out. However, I cleared the cache on my chrome and then worked out. Maybe that also works for you. 

[JanetsCrafts]

I read in the sellers handbook that your name has to be the same as what's on your social security card.  I saw this before I tried to enter my social security number.  My name was just my first and last name.  So I changed it to match my social security card, which was first name, middle initial, and last name.  I was approved right away.

[GrammiesHats]

I will not use my ss#.  They have all my other info and I will not set myself up for identify theft.  Perhaps this is what it's all about or they are trying to weed us "little" people out.  I have the verification of the number and they will not accept it.  The name is the same as my social security.

I just hope they send me what I have coming at the end of the month.  I am not up to $600 yet so why freeze me out until then?

[Spottedwoodchuck]

@GrammiesHats That is the thing that has me most upset...not even close to the $600 limit and yet I've been frozen anyway.  so what your system says my ein isn't correct, you should leave us alone until we reach your limit then freeze us!!  BTW I also noticed when I logged in the other day that the amount of $600 had changed to $500...still not there but it did change so weird.

[FenderGemsNCrystals]

@Spottedwoodchuck   The law has always allowed the payment processor, Etsy in this case, to request the SS# whenever they want.  If you were to set up a merchant account (individual payment processor account) they will require it on the application

[Spottedwoodchuck]

@fendergemsncrystals i input my information correctly.  Etsy says my EIN doesn’t match IRS records yet all other seller platforms accepted it no problem.  Etsy has NEVER had my social and they won’t get it.  All I was saying is their new requirements are causing these issues.  Why say once you reach this limit you will be frozen if it doesn’t matter when or if you ever reach their limit. 

[FocusedBoardSupply]

Has anyone had any luck? I’m going on 3 weeks and my EIN letter and CT Registration number is correct. Idk what else to do, it’s not like we pay a ton of fees to sell and then they can’t offer any support. 

[FenderGemsNCrystals]

@Spottedwoodchuck  Use your personal SS#.  Unfortunately this is another known issue

[Octopunx]

From the clarification I got:

1. If you're using a Social Security Number, you should choose Individual and enter your individual legal name that is listed on your Social Security card. 

2. If you’re a sole proprietorship and you’re using an Employer Identification Number, you should choose Individual and provide your legal name registered with the IRS.

3. If you’re not a sole proprietorship and you’re using an Employer Identification Number, you should choose Business and enter the business legal entity. A DBA is an alias and is not an actual business entity. It has to be associated with a legal entity. 

That may not address much of this, but it's worth checking if it can be one of the above. A lot of people were saying it was something dumb like a period after the middle initial or not, an address mismatch similar to the USPS verified address issue, or other piddly things that don't read as an "error" to a human but throws off bots. 

[Spottedwoodchuck]

@Focusedboardsupply. I have received several emails from Etsy support.  They all say the same thing, here are detailed instructions for you to make sure you put it in correctly…I’m doing it just how they say to yet they still won’t accept it.  Idk what else to do!

[ChicCreationsByLola]

Hi. Can you please explain how this was fixed as i am in the same predicament. 

[giftcenter]

In my case, I am still having the issue of using my EIN rather than SSN. I keep my Etsy open by using SSN but I will need to use EIN. What I try now is to make sure that my LLC is a corporation and not sole propriety. I will need to get a professional advisory on this. 

[AJsSouthernBelle]

My account is frozen too. I don’t have an EIN number so I used my SSN. The first time I updated, everything seemed fine so I figured I updated it right. Few days after I updated it, they froze my account stating that I needed to update my info. So I updated it again. They unfroze my account until I got my next order. BAM! They froze it again. I go to the page to update my info and there are 2 messages. One that says that my info has been verified and I can sell on Etsy. The other one says that my info is being varied and to check back in an hour. Etsy is manic! I’m over it! It’s invading my peace

[GrammiesHats]

what kind of a business, in this case ETSY, does not have a way for their employees or sellers to communicate with them?  If you search for a way to do it you'll find "we value our sellers and buyers" or "we are eager to assist you".  I don't see much in the way of help there.  If everyone is having the same problems complying with their rules you'd think they'd finally get the idea that it MIGHT be on their end and get it straightened out.

[giftcenter]

That really annoys me! This is not an issue that one or two people going through. A lot of us here are trying to understand the problem and eager to take action to solve that problem. No professional response I have received after numerous attempts of contacting etsy. 

[LilliAnnFashions]

Hi! I am having this same issue! I was able to get in touch with Etsy but they have not helped. I tried to go back and enter the old ssn and it would not let me. Finally some nice representative at Etsy told me that since I only just formed an llc the irs EIN number may not be valid for 2weeks. Also the old bank account does not match the new EIN number. I see your store is back up and running. What did you do? 

[Justinstitches4]

Same here I have been locked out, over a week now. I couldn't tell you many emails I sent. With a large business as ETSY why can't you have better support system!!!!! I'm so mad and I see a lot more people are having the same issue.

[giftcenter]

Hi, I cleared the cache on chrome and updated the tax info with my SSN. Before then, it just spun endlessly when I wanted to update my tax info. My SSN works for me!

But, I want to form a corporation and keep the corporation separate from my personal income. I realize that I did not form a corporation when I first started my LLC. LLC is still considered a sole proprietorship.  I have not really figured out a lot of things yet, but I will get professional advisory to turn my LLC into a corporation. I hope that solves the problem,m.