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eBay Sellers Taxed!

Nosi

Illuminator
Nosi
Joined
Jun 14, 2009
Messages
3,164
I got an email, and checked the eBay website and found it to be true.

From the email:

We're writing to let you know that starting with transactions occurring on or after January 1, 2011, new Internal Revenue Service (IRS) regulations require Half.com (and other businesses that process payments) to file a Form 1099-K for all sellers with more than 200 transactions and $20,000 USD in sales per year.
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$20,000 seems quite a bit, I know, but how concerned should I be about this?
 
This isn't changing whether any given eBay seller does or doesn't have an obligation to pay taxes. That obligation was already there (or not there, as the case may be).

It's changing what is reported to the IRS.
 
kookbreaker said:
On preview, what _Q_ said. Nothing new here, just an income reporting policy.
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Well, it's "new" in that it makes illegal conduct harder than it used to be. This year, if you sell make and sell stuff on Ebay, you're supposed to report that as income. Next year, if you make and sell stuff on Ebay, you're supposed to report that as income.

The difference is that if this year, there's a very good chance that your income will not be reported to the IRS if you don't put it down on your 1040 yourself, which means that you could probably get away with not reporting it and not paying taxes on it. That window of illegal opportunity is being closed.
 
drkitten said:
Well, it's "new" in that it makes illegal conduct harder than it used to be. This year, if you sell make and sell stuff on Ebay, you're supposed to report that as income. Next year, if you make and sell stuff on Ebay, you're supposed to report that as income.

The difference is that if this year, there's a very good chance that your income will not be reported to the IRS if you don't put it down on your 1040 yourself, which means that you could probably get away with not reporting it and not paying taxes on it. That window of illegal opportunity is being closed.
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Unless of course the IRS decide to take a look at the previous years returns of those who are now forced to report their Ebay trading, and ask some questions about exactly when they started trading because they appear to have "forgotten" to mention this on previous returns.
 
It is always your obligation to report your income. If you are in a business, then you should have business expenses against your income. If you sold say $60,000 worth stuff per year in the last 3 years and did not report it, it is time to seek legal help, because IRS will come after you.

The only people get away perhaps, are those who do business on cash basis.
 
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