US Tax Filing Consulting – How Amazon Sellers Manage the Process in the 2026 Period?
U.S. Tax Filing Advisory – For entrepreneurs selling on Amazon with an overseas-based company structure, the annual reporting process is not merely a matter of entering figures; it requires all commercial activities to be presented in a manner consistent with official systems. Sales data obtained through the Amazon infrastructure forms the basis of this process.
What Does the Calendar Period Mean?
The official period during which individuals and businesses with foreign-based companies report their commercial activities to the U.S. Internal Revenue Service (IRS) for the period from January 1, 2025, to December 31, 2025.
In this context:
- All sales for the relevant calendar year
- Operating expenses for the same period
- The company's legal and financial structure
The necessary official forms are prepared based on this and submitted to the system.
This process is not limited to reporting profits or losses. Activities must be communicated using data obtained from reliable sources, through appropriate forms, and based on traceable reports.
Common Company Structure Among Amazon Sellers in Turkey
A significant portion of Amazon sellers residing in Turkey operate abroad under a Single-Member LLC structure.
Key Features of a Single-Member LLC
- Single-member entity
- The company owner is not a U.S. citizen.
- It is considered a pass-through from a financial perspective.
Due to this structure, no separate institutional declaration is made on behalf of the company. All commercial results are reported directly through the company owner.
Detailed information about the relevant structure:
Basic Official Forms Used in the 2026 Term
For Amazon sellers who are non-U.S. citizens with a Single-Member LLC structure, two main forms are used for the 2026 period. Contact us for U.S. Tax Filing Advisory Services.
Form 1040-NR
This is the annual income statement form used for non-U.S. citizens.
The net result arising from company activities is reported on this form.
Schedule C (Profit or Loss From Business)
The company's within the relevant year:
- Total sales
- Amazon and operating expenses
- Net result
is included in this table. The result calculated on Schedule C is transferred to Form 1040-NR.
The Importance of Amazon Sales Data in the Process
Sales made through Amazon form the primary data source for the process. The IRS refers to reports generated through Amazon Seller Central when conducting its assessment.
Therefore, the preparation process begins with downloading the correct reports from the Amazon panel, within the correct date range and in the correct format.
The Importance of Amazon Sales Data in the Process
Sales made through Amazon form the primary data source for the process. The IRS refers to reports generated through Amazon Seller Central when conducting its assessment.
Therefore, the preparation process begins with downloading the correct reports from the Amazon panel, within the correct date range and in the correct format.
Basic Reports Used in Amazon Seller Central
Report Repository (New)
Menu path:
Reports → Report Repository (New)
This section is Amazon's raw data repository. It contains order and transaction-based details. It is the most powerful reference source for accounting and auditing processes.
Date Range Reports – Summary
Menu path:
Reports → Payments → Date Range Reports
Settings:
- Date Range: January 1, 2025 – December 31, 2025
- Report Type: Summary
This report:
- Annual total gross sales
- Total fees charged by Amazon
- Net payment amounts
It shows a summary. The total sales figure to be used in Schedule C is determined based on the gross sales data in this report.
Payments / Balance Panel
This panel, which opens when you click on the balance on the Amazon Seller Central home screen, displays all account activity belonging to the seller on Amazon.
This panel is used to compare Amazon reports with bank account transactions.
The Basic Logic of Schedule C
Schedule C is the main table that shows the company's commercial performance for the relevant year.
Revenue Department
- Sales made through Amazon
Expense Section
- Amazon commissions
- Advertising expenditures
- Logistics expenses
- Software and operational expenses
The calculated net result is transferred to Form 1040-NR.
General Application Flow of the Process
- Verification of the company structure
- Retrieving Report Repository and Summary reports from Amazon Seller Central
- Monitoring bank transactions via the Payments panel
- Collection and classification of company expenses
- Preparation of Schedule C
- Filling out Form 1040-NR
- Completion of submission to the official system
These steps should be managed regularly and in a data-driven manner for Turkish Amazon sellers with companies abroad.
Key Points the IRS Focuses on for Amazon Sellers
When conducting its assessment, the IRS focuses not on a single figure but on the consistency of the data. The majority of risk-creating situations stem from technical incompatibilities.
Discrepancy in Revenue Reported with Amazon Reports
- Gross sales in the Date Range Summary report
- Total income listed on Schedule C
The existence of an unexplained difference is one of the most common reasons for investigation.
Bank Transactions and Irrational Results
The amount deposited into the bank account is not directly taken into account. However:
- Amazon Payments panel
- Bank account transactions
- Schedule C result
If they appear disconnected from each other, there is a risk of further investigation. Receiving regular payments while showing very low results is noteworthy.
Excessively High Expense Ratios
The IRS focuses particularly on the following areas:
- Showing a large portion of income as an expense
- The disproportionate size of the Advertising, Consulting, and Other Expenses items
The main question here is not whether the expense exists, but whether it is reasonable.
Zero Results Appearing While Amazon Account is Active
For a year with transaction records in Amazon Seller Central:
- Schedule C appearing completely blank or zero
may cause inconsistencies in automated controls. This situation usually arises from the use of incorrect reports or forms.
Incorrect Form Usage
Common technical errors:
- Use Form 1120 for a Single-Member LLC
- Despite not being a joint structure, 1065 was selected.
Such errors are directly flagged as mismatches by the system.
Failure to Retain Amazon Reports
Although documents are not requested in the first stage, the following reports may be requested during the review process:
- Report Repository (New)
- Date Range Summary
- Payments / Balance records
Failure to retain these documents will prolong the process.
Basic Official Forms Used in the 2026 Term
For Amazon sellers who are non-U.S. citizens and have a single-member LLC structure, two main forms are used for the 2026 period.
Form 1040-NR
This is the annual income statement form used for non-U.S. citizens.
The net result arising from company activities is reported on this form.
Schedule C (Profit or Loss From Business)
The company's within the relevant year:
- Total sales
- Amazon and operating expenses
- Net result
is included in this table. The result calculated on Schedule C is transferred to Form 1040-NR.
The Importance of Amazon Sales Data in the Process
Sales made through Amazon form the primary data source for the process. The IRS refers to reports generated through Amazon Seller Central when conducting its assessment.
Therefore, the preparation process begins with downloading the correct reports from the Amazon panel, within the correct date range and in the correct format.
Basic Reports Used in Amazon Seller Central
Report Repository (New)
Menu path:
Reports → Report Repository (New)
This section is Amazon's raw data repository. It contains order and transaction-based details. It is the most powerful reference source for accounting and auditing processes.
Date Range Reports – Summary
Menu path:
Reports → Payments → Date Range Reports
Settings:
- Date Range: January 1, 2025 – December 31, 2025
- Report Type: Summary
This report:
- Annual total gross sales
- Total fees charged by Amazon
- Net payment amounts
It shows a summary. The total sales figure to be used in Schedule C is determined based on the gross sales data in this report.
Payments / Balance Panel
This panel, which opens when you click on the balance on the Amazon Seller Central home screen, displays all account activity belonging to the seller on Amazon.
This panel is used to compare Amazon reports with bank account transactions.
The Basic Logic of Schedule C
Schedule C is the main table that shows the company's commercial performance for the relevant year.
Revenue Department
- Sales made through Amazon
Expense Section
- Amazon commissions
- Advertising expenditures
- Logistics expenses
- Software and operational expenses
The calculated net result is transferred to Form 1040-NR.
General Application Flow of the Process
- Verification of the company structure
- Retrieving Report Repository and Summary reports from Amazon Seller Central
- Monitoring bank transactions via the Payments panel
- Collection and classification of company expenses
- Preparation of Schedule C
- Filling out Form 1040-NR
- Completion of submission to the official system
These steps should be managed regularly and in a data-driven manner for Turkish Amazon sellers with companies abroad.
Key Points the IRS Focuses on for Amazon Sellers
When conducting its assessment, the IRS focuses not on a single figure but on the consistency of the data. The majority of risk-creating situations stem from technical incompatibilities.
Discrepancy in Revenue Reported with Amazon Reports
- Gross sales in the Date Range Summary report
- Total income listed on Schedule C
The existence of an unexplained difference is one of the most common reasons for investigation.
Bank Transactions and Irrational Results
The amount deposited into the bank account is not directly taken into account. However:
- Amazon Payments panel
- Bank account transactions
- Schedule C result
If they appear disconnected from each other, there is a risk of further investigation. Receiving regular payments while showing very low results is noteworthy.
Excessively High Expense Ratios
The IRS focuses particularly on the following areas:
- Showing a large portion of income as an expense
- The disproportionate size of the Advertising, Consulting, and Other Expenses items
The main question here is not whether the expense exists, but whether it is reasonable.
Zero Results Appearing While Amazon Account is Active
For a year with transaction records in Amazon Seller Central:
- Schedule C appearing completely blank or zero
may cause inconsistencies in automated controls. This situation usually arises from the use of incorrect reports or forms.
Incorrect Form Usage
Common technical errors:
- Use Form 1120 for a Single-Member LLC
- Despite not being a joint structure, 1065 was selected.
Such errors are directly flagged as mismatches by the system.
Failure to Retain Amazon Reports
Although documents are not requested in the first stage, the following reports may be requested during the review process:
- Report Repository (New)
- Date Range Summary
- Payments / Balance records
Failure to retain these documents will prolong the process.
Topics Not Focused On in Practice
In practice, the IRS generally does not focus on the following details:
- Which country the products are shipped from
- Payment dates
- In which country are the expense invoices issued?
What matters is that income is accurately reflected and expenses are related to commercial activities.
Final Evaluation
The risk for Amazon sellers often stems not from deliberate negligence, but from discrepancies between reports, tables, and bank records.
Using accurate Amazon reports, preparing Schedule C logically, and proceeding consistently with Form 1040-NR significantly reduces the risk of an audit.
Professional Support
Manage the international reporting process for Amazon sellers securely with our expert team.
You can contact us to start the process. You can contact us for US Tax Filing Consulting.
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