If you're a high volume seller on ebay (or anything with 200+ paypal transactions), Uncle Sam is going to be looking more closely at you.... ---------------------------------- 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 ebay.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. If you're a high-volume seller who has met or is close to meeting the IRS thresholds, we may need to generate a Form 1099-K for you. If you have multiple accounts, we'll take all of them into consideration when calculating your volume status. If you exceed the IRS thresholds, we'll send your first Form 1099-K to you in early 2012. Your Form 1099-K will give you a consolidated report of all payments received through Half.com for 2011. This information will also be reported to the IRS. Assuming you continue to exceed the IRS thresholds, we will send a Form 1099-K to you annually, and we'll also report your payments to the IRS. If your ebay.com volume does not exceed the IRS thresholds in a particular year, you will not receive a Form 1099-K and we will not report any amounts to the IRS for that year, even if you have given us your Taxpayer Identification Number (TIN) and Social Security Number (SSN).
shouldve figured this would've happened sooner or later... the govt always has to have a fucking piece.
All the more reason to stick to the BBS and just deal with your fellow Skullbrainers. (Though I doubt anybody does $20K here, it just bugs me that there is one more database out there tracking personal activities.)
I do have more than 200 transactions on ebay. (i.e. selling our western crap), but I don't make 20,000.00 a year. Thank God I am almost done with the purge. As long as the requirements are AND not OR I think I'll be OK. I hope. ~Maddie
Fucking corporate government! They're fishing. Trust me they'll see how much tax revenue they can line their pockets with with this new regulation. I guarantee they've already come up with a percentage they're looking for from this. If it's not enough they'll dig deeper and lower it to say- 100 transactions or even start to take a piece of maybe 5,000 or as low as 1,000 earned from sales. Most people I know eek out a small supplemental income selling items yet big brother (run by greedy corporations already recording record profits while most of us struggle) want a piece of that. Fucking typical.
I think to be fair, they should have to monitor individual e-bay auctions. Say a seller sells 200 items, of which 150 are brand new products through a retail store they're making profit on, but 50 of the items they sold were second hand items, that they may have paid for at once, and might just be selling at cost or even losing money... Doesn't seem right. But I don't know anything about taxes, and hand all my shit to H&R block to do for me, so I might just be sounding like a dumb-ass.
Only a matter of time before they track that private purchase of a $400 Bemon (paid thru paypal) and want a part of that transaction. Easy to track versus a cash transaction.
^^^ zzzzzzzzziiiiiing! According to my buddy who does ebay full-time: the tax is not on the actual item, but on the "electronic payment service." makin' it harder to dodge
I don't know what you guys are complaining about. Millions of illegitimate children depend on your tax money!
Call me Canadian, but that sounds perfectly reasonable to me. Good way to control money laundering and sale of stolen items on the web, no? Plus, if you sell for over 20k a year, you are a business and should be treated as such. I remember when I ran a store, I was pissed off at eBay stores that had no overheads, tax numbers, etc.
I kind of agree. If you have a big business and are making tons of cash through ebay it should be treated the same. I really don't see the difference. If you are using Ebay for business and making a ton..why should you be exempt? Seems silly why it wouldn't 'count' just because someone is using Ebay as a vehicle to sell.
Paypal is a bank. Are these regulations any more or less stringent than the IRS applies to other banks?
