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!

LadyInStitches
Conversation Maker

Re: Frozen Account Due to Unverified Tax Information

I think there is some confusion for some sellers about using their EIN from their LLC for Etsy.  You should only use your EIN from your LLC IF you have also filed the proper form with the IRS to be treated as a corporation.  Most LLC's are still considered sole proprietors.  Here is some documentation directly from the IRS that talks about using your SSN or personal EIN for information reporting purposes (which is 1099 speak). Hope this helps --

A Limited Liability Company (LLC) is an entity created by state statute. Depending on elections made by the LLC and the number of members, the IRS will treat an LLC either as a corporation, partnership, or as part of the owner's tax return (a "disregarded entity"). A domestic LLC with at least two members is classified as a partnership for federal income tax purposes unless it files Form 8832 and elects to be treated as a corporation. For income tax purposes, an LLC with only one member is treated as an entity disregarded as separate from its owner, unless it files Form 8832 and affirmatively elects to be treated as a corporation. However, for purposes of employment tax and certain excise taxes, an LLC with only one member is still considered a separate entity.

Owner of Single-Member LLC

If a single-member LLC does not elect to be treated as a corporation, the LLC is a "disregarded entity," and the LLC's activities should be reflected on its owner's federal tax return. If the owner is an individual, the activities of the LLC will generally be reflected on:

An individual owner of a single-member LLC that operates a trade or business is subject to the tax on net earnings from self employment in the same manner as a sole proprietorship.

If the single-member LLC is owned by a corporation or partnership, the LLC should be reflected on its owner's federal tax return as a division of the corporation or partnership.

Taxpayer Identification Number

For federal income tax purposes, a single-member LLC classified as a disregarded entity generally must use the owner's social security number (SSN) or employer identification number (EIN) for all information returns and reporting related to income tax. For example, if a disregarded entity LLC that is owned by an individual is required to provide a Form W-9, Request for Taxpayer Identification Number (TIN) and Certification, the W-9 should provide the owner’s SSN or EIN, not the LLC’s EIN.

 

 

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Justinstitches4
Inspiration Seeker

Re: Frozen Account Due to Unverified Tax Information

If your LLC was a sole member, adding your SSN or personal EIN was the correct way to do it, that's why you could open back up.  A sole member LLC is not a corporation for IRS purposes.

 

I STILL CAN'T GET ON MY SHOP. PLEASE HELP IF YOU CAN

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Re: Frozen Account Due to Unverified Tax Information

This is the best explanation so far addressing the issue that I am having. I will now make sure that my LLC is a corporation and will take action to make it as such. I assume that there is no glitch on the Etsy side. I still take the responsibility to make changes to the structure of my LLC. I saw that some of us did try adding their personal names after the name of LLC, and the issue was resolved. I did that but my shop was again frozen until I update it with SSN. I keep my shop open with my SSN hopefully until I figure out how I will keep my shop open registered as an LLC with an EIN number. 

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rootsandloveco
Inspiration Seeker

Re: Frozen Account Due to Unverified Tax Information

This is happening to me and it’s frustrating! I just launched a new product and announced it all over social media with so many interests but they can’t even buy it because Etsy froze me shop too. Well I’m in the process of building my own website now. Etsy can’t keep doing this to us!

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Re: Frozen Account Due to Unverified Tax Information

I am having the same problem. I spoke to Etsy Help twice yesterday. Apparently, it is a glitch and many stores are impacted. So far - my store is still frozen. 

I have another call into them (Sunday morning). I was told they are 'working on it but right now there is nothing I can do. Stinks to be frozen on a long weekend, too.

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rootsandloveco
Inspiration Seeker

Re: Frozen Account Due to Unverified Tax Information

I see that you have 1 listing. Is your store back on live?

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Re: Frozen Account Due to Unverified Tax Information

I have not heard before that Etsy has accepted this as a glitch from their side. 

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CosmicPeaks
Inspiration Seeker

Re: Frozen Account Due to Unverified Tax Information

Do you have a phone number for them? I can't find a number to call and speak to an actual person. 

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Buntique
Conversation Maker

Re: Frozen Account Due to Unverified Tax Information

@CosmicPeaks it is my understanding that there is no longer any phone support for sellers. Even if there was, it would not be very helpful since the phone support has always been an outsourced company and not actual Etsy employees. You will need to make contact through the online help. There may be online chat support available but it is also possible that there might not be anything but email support. Sadly Etsy isn't really very available or responsive to sellers. They don't really seem to view the sellers as customers. Retention and phone support has seemed for some time to be focused towards buyers.

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CosmicPeaks
Inspiration Seeker

Re: Frozen Account Due to Unverified Tax Information

@Buntique I couldn't find a valid number either. Only number I found wasn't active and was just a machine saying go to Etsy's help page. I wanted to ask @RushCreekVintage about a phone number since they mentioned they have called them.

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Buntique
Conversation Maker

Re: Frozen Account Due to Unverified Tax Information

@CosmicPeaks most of what I've seen people talking about in the forums in the past month is having a link for Etsy to call back for some help issues but it is intended for buyers. Sellers who used the phone call back links were reporting that they were told the phone calls weren't for them, to use the online help options instead. So my understanding is there isn't a phone number to call even for buyers, it is a link that allows a user to request a call back.

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Re: Frozen Account Due to Unverified Tax Information

No, it's not. I have no idea why this one listing is showing up except a customer contacted me yesterday and wanted to buy the listing but couldn't get to check out. 

I called support again and was told the team that is working on this problem does not work on Sunday so I might get a contact tomorrow. It make zero sense not to have full support 7 days a week. 

So, I simply have to wait over a 3-day weekend when I most likely would have gotten sales. It's crazy. At least I have my own website, too.

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MaiIslandBabe
Inspiration Seeker

Re: Frozen Account Due to Unverified Tax Information

Do you have a number? I was on hold with the buyers line for 30 min and never got through and finally hung up. I am hoping that on Tuesday this gets fixed. I am also loosing sales. I guess I will work on my website in the meantime.

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Re: Frozen Account Due to Unverified Tax Information

I went to the Etsy Help Center.

After you click on a topic, there's is a box that you can click "I still need help".

You can then put in your number and you'll get a return call from the help center. You cannot call them directly (at least I couldn't)

 

 

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Re: Frozen Account Due to Unverified Tax Information

I was reading in another discussion that the name you enter MUST be what the IRS has on file. So I pulled out my last tax return and found that only my middle initial was used. I changed my name to what the IRS has and bingo, my shop is back.

So why do they require FULL NAME ?? (which didn't work for me) They should make it VERY CLEAR it must be the name that IRS has on file. 

But then again, who knows? My shop may disappear again in an hour... But wanted to share.

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Chalees
Inspiration Seeker

Re: Frozen Account Due to Unverified Tax Information

My account is frozen too since Thursday night

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Glasslace80vase
Inspiration Seeker

Re: Frozen Account Due to Unverified Tax Information

I was having the same problem as everyone here and got a hold of the help on the phone and was asked if my middle name was on there and to make sure I was fixing it for 2022 and BAM it was unfrozen! I didn't have my middle name and I was clicking 2021 because I thought that is the taxes we are filing. I hope this helps someone  

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TheLuckyTavern
Inspiration Seeker

Re: Frozen Account Due to Unverified Tax Information

I added my middle initial and it immediately all my listings came back!!! Type in your middle initial. 

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Spottedwoodchuck
Inspiration Seeker

Re: Frozen Account Due to Unverified Tax Information

I'm using an EIN and etsy wont take it, says the info doesnt match irs records.  i'm not entering my SS# but I thought maybe I should take a look at it since everyone else seems to think its helping....My SS card has my full name, first, middle and last.  Etsy wont take it if I put in the full name, but I put in the initial and it went.  Shop is still frozen, no items are showing for sale.  I won't hold my breath lol just thought I would share.

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Chalees
Inspiration Seeker

Re: Frozen Account Due to Unverified Tax Information

thanks for the tip but I don't have a middle name, I've checked all my info many times and still nothing works

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Re: Frozen Account Due to Unverified Tax Information

I was too hopeful. I just checked  and it's frozen again. It was live and operational for less than one hour. 

WTF?

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TheFestiveStudio
Inspiration Seeker

Re: Frozen Account Due to Unverified Tax Information

Same with my shop...frozen and basically gone from Etsy search.  I called customer support and she said there's a glitch in the system (even though I received an alert saying my information was verified and I can start selling). CS told me they hoped it would be resolved this week  

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Re: Frozen Account Due to Unverified Tax Information

@TheFestiveStudio 

Here's hoping, as early in the week as possible!

Trish O'Connor
Owner, Epiclesis Consulting LLC

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AndysFineVintage
Inspiration Seeker

Re: Frozen Account Due to Unverified Tax Information

I have the same issue. I noticed multiple people in this forum said they call Etsy support.  How do you do that? I can't find a number and I can't find a chat box either. Thanks!

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Re: Frozen Account Due to Unverified Tax Information

How many shops are going to be closing over this issue?  Poor way to run a business.

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