Does google checkout or paypal report income to the IRS?

Answer 1

Not at present but this could change in the future. Regardless of whether this is reported or not, you still must claim any income that you receive. If the IRS wanted to press the issue they can always force disclosure of money streams from virtually any source.

Answer 2

They don't provide information to the IRS for everyone. At the beginning of this last year the IRS summoned certain people's records. They reserve the right to according to the user agreement. Also this is for Paypal. I don' t know about google checkout.

Answer 3

If it's income, it's your responsibility to report it. Period. Whether they report it or not....

The IRS has a nice writeup (online auctions) if you visit their website. The gist of it is you are selling personal items for less than you paid for them, it's a non-reportable loss. If you sell personal items at a gain, they go on schedule D. If you are buying items specifically for resale, then it is either hobby income or a schedule C.

The IRS has announced plans to require online venues such as eBay to report anyone whose sales are more than $5000 and/or 100 transactions in one year. The IRS is fully aware that eBay/Paypal will hand over records if subpoenaed. (Though with Paypal all they'd look at are the receipts--they would assume it's all income unless you could show otherwise.)

Answer 4

Watch the CTR's. Cash Transaction Reports. Any transaction over $10,000 or equalling smaller transactions in very short periods will be reported to the I.R.S.

Answer 5

If you make income from them, yes. But unless your an employee or have investments that get you income, such as interest, then no.
No need to worry about it, they work like a bank.