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Monday, February 26, 2007

IRS Goes After eBay, Wants Info on Seller Earnings

If you are making a living selling stuff on ebay and are not declaring your earnings, be careful. The US tax authorities are doing everything they can to make sure that you are not evading your responsibilities, and they're asking the online auction giant to provide the government with a list of sellers' earnings.

With so many people making part or all of their living through eBay, the government wants its cut. This isn't an issue of any new taxes, but an attempt to collect the income tax that is already required. Because eBay does not report information about its sellers to the government, income reporting is left up to individuals, and the temptation not to list eBay revenue as income can be a strong oneā€”and in some cases, it's not always clear when one has to do so.

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2 Comments:

  • Ebay sellers should be reporting their income anyway, that is if they are selling on ebay as a primary or secondary source of income. Also, if they do report their income and create a sole proprietorship they will also be able to write off a lot of expenses, ebay and paypal fees, driving to post office, new computer/scanner/camera.

    Eric Carlson Ebay Selling Guide

    By Blogger Eric Carlson, at 9:49 PM  

  • If anybody, the IRS needs to target PayPal because thats where the actual money is being exchanged. How can eBay issue a tax document like a 1099-MISC if it didn't even give any money? PayPal is the one responsible for money switching hands.

    Allan
    hacker not cracker

    By Anonymous Allan, at 3:15 AM  

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