Ebay / IRS

home owner · #1 Aug 9, 2006, 02:50 PM

does anyone out there know if Ebay reports sales records to the IRS?

RickJ · Aug 9, 2006, 03:17 PM

They never have for me, but I've only sold 60-70 things...none high dollar. I suppose, though, that a Power Seller might be a target of their "tax hunters", so keep that in mind.

Have you searched their site real well for info on this?

home owner · Aug 9, 2006, 03:56 PM

that's more or less what I thought. Even though I use it for small items regularly, we are not talking thousands of dollars. I would clearly expect that issue would change if someone was selling regularly and bringing in major bucks. thank you for taking the time.

home owner · Aug 9, 2006, 03:59 PM

I just noticed your last line which mentions this "site real well" for info. I have no idea what this is. Can you direct me?

RickJ · Aug 9, 2006, 04:11 PM

Meaning searching eBay for what they say about taxes.

I'm with you: I can guess that they are not responsible to report every sale of a member to the IRS, but at the same time would not be surprised to learn that they are required to report the sales of members with over $X.XX of sales. I just don't know.

I did a little checking, and the most info I found was:

Quote:

Originally Posted by ebay

As a condition of using the eBay Web site, sellers agree to comply with all applicable domestic and international laws, statutes, ordinances and regulations regarding:

* the use of eBay’s service.
* their own listings.
* their solicitation of offers to purchase.
* the sale of their items.

Sellers are also responsible for paying all fees associated with using eBay’s service and Web site, and all applicable taxes associated with the use of eBay’s service and Web site.

I don't think it's possible for the IRS to enforce collection of income tax for every single item sold, but despite that there is nothing on the site saying what they report to the IRS, if I was a Power Seller, I would be concerned of the consequences - and potential info reported to the IRS without my knowledge - if I was not reporting my income.

If eBay IS reporting sales info to the IRS, they may or may not have to tell the public of this requirement.



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