Ben Franklin was pretty much right on the money when he said that this country is nothing but death and taxes. Tax experts are pushing the IRS to force online auction sites like eBay and Amazon to track users’ sales and report them to the government. However, should the IRS tax sellers on their auctions, I suspect eBay would see a significant drop in overall auctions from smaller users who aren’t making their living off the auction site.
Think about it. Would you sell your $9000 Rolex on eBay if you knew you’d have to pay both federal taxes and eBay fees? Didn’t think so. You’d take that watch to a pawn shop rather than let the government screw you over again. eBay has gone on the defensive saying that they aren’t considered a broker and won’t adhere to taxation rules should they come into play.
Those of you who make a living off eBay might want to take some time to decide whether it’s worth staying in the game or not, should anything happen.
IRS urged to go after eBay sellers [SF Gate]
The IRS is targeting the professional sellers that make thousands of dollars in income and don’t report it. It’s unfair to small business owners who actually report their income. I know people don’t like paying taxes, but at least be honest and report your correct earnings.
I agree, Ebay sellers should be reporting their income if they are selling on ebay as a primary or secondary source of income. Also, if they do report their income as a sole proprietorship they will also be able to write off a lot of expenses, ebay and paypal fees, driving to post office, new computer/scanner/camera.
Eric Carlson Ebay Selling Guide
I think Chief Justice John Marshall said it best, “The power to tax involves the power to destroy.”
I think the greater point is being missed here. According to the IRS there are only two forms of income that do not have to be reported. Think about this: your kid sets up a lemonade stand several imes during the summer, makes $100 or so, guuess what- it’s income AND reportable! and TAXABLE! Now enter Social Security wanting their share. Live in a state with personal Income Tax? You guessed it. Now how about those on Disability that have to sell things thay have collected over a life time to make ends meet? What’s wrong with these scenarios? There are up wards of 500,000 pages of Tax Codes that even the IRS cannot figure out. Think about it!