If so, how do they go about taxing you on what you've earned?
2007-11-15 09:38:58 · 5 answers · asked by TheChicagoKid 2 in Business & Finance ➔ Taxes ➔ United States
eBay's official policy is that you pay your taxes. if they receive a request regarding a specific seller from the IRS, they say they will give them the records.
Meanwhile, the IRS has proposed a 1099 form to track transaction volumes for both online auctions and credit card transactions. This new form would require eBay to report your sales if you had $5000 in gross sales, 100 transactions or both.
And let's say you *think* you can get away without reporting business income--what will you do if audited and the agent asked where did all this money in your paypal/bank account come from?
2007-11-15 11:58:04 · answer #1 · answered by Anonymous · 1⤊ 1⤋
The IRS does not specifically watch ebay, but if you happened to be audited, they would question all incoming money. This means that if you had money transferred to your checking account from PayPal or if you had deposits to your checking account from a source other than your paycheck, they would want to know what that was.
You should keep records of your ebay sales including the money you received, the ebay and PayPal fees, the original cost of whatever you sold, what you paid to ship it, and your net income. This net income should be declared, but that's your decision.
2007-11-15 17:51:29 · answer #2 · answered by Kathryn 6 · 2⤊ 0⤋
I would imagine that they have their ways. They've been trying to get access to their records but the laws would need to be changed for some of it and Congress hasn't yet considered it.
2007-11-15 17:41:59 · answer #3 · answered by Bostonian In MO 7 · 0⤊ 0⤋
have no illusions my friend the federal government and its various "no name" agencies monitor and record your every move every transaction and every breath... you have many numbers that id you anything from drivers liscence numbers to social security numbers etc there all the same and one might argue "well i have nothing to hide so i dont have to worry" lol it dosent matter if they want to search you or anyone else they can just walk right in and do so its ridiculous ...i know alot of people think there vote dosent count but you really cant lose anything by voting so vote and when you do vote .....vote ron paul for president .......
2007-11-15 18:17:52 · answer #4 · answered by Anonymous · 1⤊ 1⤋
they should have done it long time ago. this is a very big shelter for people who don't want to pay taxes. hopefully it will be enforced
2007-11-16 11:23:23 · answer #5 · answered by alikmal 2 · 0⤊ 2⤋