Amazon has announced an important update to its transaction and summary reports that directly impacts 1099-K tax reporting and month-end accounting reconciliation for sellers operating in the US, Canada, Mexico, and Brazil.
Background of the Change
Traditionally, Amazon reports were structured around payout dates, meaning transactions were grouped based on when funds were released to sellers. While convenient for cash tracking, this often created reconciliation challenges—especially when aligning Amazon data with IRS Form 1099-K, which is transaction-based rather than payout-based.
To address this mismatch, Amazon is restructuring its reporting methodology.
What Is Changing?
Starting February 28, 2026, Amazon will:
- Organize Transaction and Summary Reports based on when transactions are posted to the account, not when payouts occur.
- Include deferred transactions (such as reserves, chargebacks, or delayed settlements).
- Add two new columns:
- Transaction Status
- Release Date
These enhancements allow sellers and accountants to better track when revenue is earned versus when it is paid for accrual basis accounting.
The updated reports will apply to data with a start date as early as January 1, 2025. Any reports with earlier start dates will remain unchanged.
Why Amazon Introduced This Update
The primary objective behind this change is accuracy and compliance:
- Improved 1099-K Reconciliation
The IRS requires gross sales reporting based on transactions processed, not payouts. This update aligns Amazon reports more closely with IRS expectations. - Better Month-End Accounting
Sellers can now reconcile revenue on an accrual basis more easily, reducing timing differences between Amazon reports and accounting systems like QuickBooks or NetSuite. - Transparency in Deferred Amounts
Including deferred transactions helps sellers understand why reported earnings may differ from actual cash received during a specific period.
Impact on Sellers and Accounting Teams
- Existing third-party integrations (accounting software, custom scripts, BI tools) may need mapping updates due to the new report structure.
- Month-end close processes may need to shift from payout-based reconciliation to transaction-based reconciliation.
- Tax professionals will find it easier to tie Amazon sales data directly to 1099-K figures, reducing audit and compliance risks.
Action Steps for Sellers
Amazon recommends using the updated reports going forward. To access them:
- Go to Payments
- Select Reports Repository
- Under Account type, choose All (Unified Reports)
- Under Report type, select Transaction
- Set the reporting start date as January 1, 2025
- Click Request report
Helpful Reference Links
- IRS guidance on Form 1099-K (official):
https://www.irs.gov/forms-pubs/about-form-1099-k - Amazon FAQ on 1099-K transactional reporting (Amazon Help):
https://sellercentral.amazon.com/help/hub/reference/G202211130
Final Thoughts
This update is a positive structural change, especially for sellers with high transaction volumes or multi-state sales. While it may require short-term adjustments in accounting workflows, it significantly improves long-term accuracy, compliance, and audit readiness.
