IRS going after ebay sellers???

endzone · February 16, 2005 2:47PM

Heard on the news today,
where the IRS will be going after Ebay sellers to get into their profits.
Anybody else hear about this or want to comment.
I'm just furious about this myself...

K6AZ · February 16, 2005 2:51PM

Well, if you ain't cheating on your taxes you got nothing to worry about.

A tip for those that are, PayPal is rolling out verification by SS number.

DMWJR · February 16, 2005 2:53PM

Not all selling on ebay is taxable.

Deadhorse · February 16, 2005 3:21PM

They aren't going to worry about anybody with a couple of low end sales.

But Powerscrewers and folks with lots of cash flow had better have some records and be reporting/paying quarterly. I don't think this is new news at all.

Seems to me this came up last year or perhaps even earlier. The IRS is not a Federal agency, but they act like one. They are however, the collection contractors for the US Treasury and they will get that pound of flesh if they can.

ElectricEye · February 16, 2005 3:25PM

I pay the BOE $400 or more in sales tax per quarter just on CA sales. People often ask me why I report my eBay income to the feds and state. I'll have many examples to point to in the near future.

clackamas · February 16, 2005 4:29PM

If paypal starts with the SS stuff I am dumping them, the fees are bad enough. I get enough phishing emails that I don't believe all thier data is 100% secure and I am not allowing my SS to be part of it.

Coinhusker1 · February 16, 2005 6:56PM

<< A tip for those that are, PayPal is rolling out verification by SS number. >>

K6, do you have a link to a notice from PayPal (or any other source) on this? Like Clackamas said, I'm not sure if I am comfortable if Paypal has my SS number.

DMWJR · February 16, 2005 7:07PM

When have the asked for an SSN? I've never given them mine.

blueifalcon · February 16, 2005 7:17PM

I'm not a seller, but I don't believe I provided my SSAN to ebay when I registered. I know there are ways to get SSAN'S though. I was told I have a case of CRS (Can't Remember-figure out the last word) and may have given them my SSAN. Oh well...The IRS can smell a buck a mile away!

Manorcourtman · February 16, 2005 7:29PM

I will NEVER, EVER, give out my SS #. If Paypal asks I will them dump immediately. Ebay should never ask you for it either. I have not heard of the IRS getting into eBay affairs yet? Anyone else? Chris

JrGMan2004 · February 16, 2005 8:07PM

The thing with PayPal and the SSN, to verify your account, you have to do 2 of 3 things, register a credit card, register a bank account, or give them your SSN...

MAD4MORGANS · February 16, 2005 8:28PM

Did you ever notice: When you put the 2 words

"The" and "IRS" together it spells "Theirs?"

----------

A penny saved is a government oversight.

Tonekiller · February 16, 2005 9:03PM

<<

Did you ever notice: When you put the 2 words

"The" and "IRS" together it spells "Theirs?"

Ouch!

----------

A penny saved is a government oversight. >>

Neptune · February 16, 2005 10:02PM

I don't sell full time - or alot - but each yr. I always tack on my 'miscellaneous income' to cma.

I have a question: Are 'garage sale' profits taxable? I sell such a variety of things, that I have always considered eBay like a garage sale. I guess they probably are.

One interesting thing is that I lost my hard drive, and am in the process of going through PP records online to determine farm expense that I purchased through them. So it does work both ways.
Their records go back quite a ways - is it a year or more?

thebeav · February 16, 2005 10:03PM

<< I don't think this is new news at all. >>

Exactly....I wouldn't think of not paying income taxes on my internet sales. After all, that's what computers do best, keep records....For ever and ever !!

Paul

CarlWohlforth · February 16, 2005 10:23PM

I would guess if you are a collector selling some extras it won't matter. If you are a real business who isn't reporting your numbers accurately then you are accepting that one day the IRS may catch up with you. This is how it has always been with small businesses that have nothing to do with eBay. eBay itself is so big it will have to do what the IRS wants it to do.

TerrapinWill · February 16, 2005 10:31PM

I'm not a tax expert, but I would guess people selling a few coins here and there wouldnt be subject to Federal or State income taxes, as you would be taxed on profit. Plus if that income didnt exceed $599 per year it wouldnt even be subject to SS taxes. Now state sales tax, that's probably different.

rhedden · February 16, 2005 10:32PM

This could be very annoying for people like me who sell duplicate coins and other unwanted material on ebay, and essentially break even or take a loss. Can you imagine getting audited over some coins you sold off at a loss from your collection?

coynclecter · February 16, 2005 10:40PM

<< I'm just furious about this myself... >>

Why?? Legit businesses pay taxes, why shouldn't the ebay stores be the same. They are not going after you or me who sells a few coins here and there but sellers who sell 1000+ items a year are running a business and will be treated like any other business.

airplanenut · February 16, 2005 10:46PM

<< If paypal starts with the SS stuff I am dumping them, the fees are bad enough. I get enough phishing emails that I don't believe all thier data is 100% secure and I am not allowing my SS to be part of it. >>

Phishing emails aren't limited to just account holders. I don't know where there are Washington Mutual branches near me (there aren't any), and I still get tons of emails saying my info needs updating...

Jeremy

RotatedRainbows · February 16, 2005 10:59PM

<< 
Their records go back quite a ways - is it a year or more? >>

Any transaction you have ever had with PayPal they have a record of, whether last year or five years ago.

MrEureka · February 16, 2005 11:11PM

I will NEVER, EVER, give out my SS #. If Paypal asks I will them dump immediately. Ebay should never ask you for it either. I have not heard of the IRS getting into eBay affairs yet? Anyone else?

Chris - Comments like that are a fine way to draw the attention of the IRS.

On that note, I wonder how many self-incriminating responses we could get to thread entitled "Do you cheat on your taxes?"

coynclecter · February 17, 2005 3:12AM

Mr. Eureka

I'm sure the IRS is not short on leads. Unless you provide them specifics, IE amounts and accounts I doubt if they will be searching forum boards to see who didn't report the $100 they made on a coin sale. In fact, they are light years behind in catching up with the people who have been dodging the 5-6 digit income reporting. Some of these are Ebay sellers with 5000+ feedback, not the ones who sell 2-3 coins a month.

In addition, so many gov't resources have been diverted to "homeland security" many important issues are being overlooked. Contact the FBI and tell them you got a bad check for $2000 and you won't even get past the switchboard.

BTW: Not giving out your SS number protects you from identity theft, it has nothing to do with reporting.

Prethen · February 17, 2005 3:14AM

You've just been flagged.

<< On that note, I wonder how many self-incriminating responses we could get to thread entitled "Do you cheat on your taxes?" >>

Dave99B · February 17, 2005 3:20AM

I sense some major paranoia here….

Dave

relayer · February 17, 2005 3:27AM

I view it more of a Schedule C loss write-off

Nocerino18 · February 17, 2005 3:29AM

There is no sales tax on coins if shipped out of state. Sales tax on coins within your own state depends on state laws. I am from CT and there is none on coins.

Income tax is required to be paid no matter what, by all, no matter how small the profit.

fishcooker · February 17, 2005 3:34AM

Let's face it - Tax coffers are empty on National, State and Local levels. They will be coming to collect the tax you owe. If you are a criminal, you should have enough money on hand to cover the taxes and penalties from all the years you cheated.

ms70 · February 17, 2005 3:57AM

<< I sense some major paranoia here….

Dave >>

Me too. Mostly from those making sure to post how they never cheat on their taxes & report every cent.

DMWJR · February 17, 2005 4:16AM

<< 

<< I sense some major paranoia here….

Dave >>

Me too. Mostly from those making sure to post how they never cheat on their taxes & report every cent.

>>

Yes, well they are talking a good line . . . .

chiefbob · February 17, 2005 4:55AM

" I sense some major paranoia here"

Remember, paranoia is just a healthy state of awareness!

carl · February 17, 2005 5:23AM

I'm no expert either but don't think the IRS can tax ebay sellers. If they do that they would have to tax kids on the corner selling cool aide, garage and yard sales, bums on corners collecting change, homeless people accepting handouts. Maybe they do try. I know they can't add state sales taxes for other states they send stuff to. On TV lately with all the stolen identities, even members of the government have stated NEVER give out your SSN to anyone for anything. Actually even using a credit card on the net is scary. People get this personal information from to many places already. I would never buy anything on ebay, via the net, through mthe mail, over a phone if anyone asks for a SSN. If the say don't give it out on TV then who would say to give it to a world access organization. Even the stores that have you use a store card have to much access to your personal life and you never know who works in their computer department where all the information is located.

weresteve · February 17, 2005 5:32AM

<< I have a question: Are 'garage sale' profits taxable? I sell such a variety of things, that I have always considered eBay like a garage sale. I guess they probably are. >>

In some states the answer is ... YES. For a while the the state of Kansas had two young college age girls trolling shows handing out tax forms and such to the dealers. Annoyed a lot of people and as a result the shows moved to the Missouri side of the state line.

fishcooker · February 17, 2005 5:38AM

If you go around doing garage sales, buying stuff super cheap and re-selling for a profit, YES you owe income tax and there are cases where you would also owe Self Employment Tax in addition. Ebay is no different.

oreville · February 17, 2005 8:43AM

The Internal Revenue Revenue Service is smart enough to eventually force ALL intermediary payors like paypal to issue forms such as 1099's.

I give it at most, a couple of years to roll out the implementation.

It would not surprise me to see all payors such as banks to be someday required to send a complete list of all payments made by their customers to others by routing numbers and account numbers. Then the next step would be for recipients (or even payors) to required to justify and break down payments received as either income and category of income, gifts, loan repayments, refunds, etc. A few years away.

All "slips" driven.

Cash transactions are rapidly disappearing and is increasingly looked upon as "negative" behavior.

ScarsdaleCoin · February 17, 2005 9:16AM

All ebay transactions are being watched, recorded, and sooner or later IRS will grab everyone....this is nothing new, it has been reported by the IRS information center several years ago.....

ms70 · February 17, 2005 9:22AM

This will probably result in another stock market crash of some sort.

DMWJR · February 17, 2005 9:24AM

I plan on throwing so many red herrings on the floor that they don't notice the steaming turd laying there.

LindeDad · February 17, 2005 9:45AM

Have been losing money on eBay with all the fees. Can I do a deduction?

IRS going after ebay sellers???

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