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Does Ebay or Paypal report our sales to IRS?

janies_bizz
Enthusiast
I just started selling on Ebay and Im a little worried about reporting my extra little income. Its not that much but is there like a certain amount that I have to make for them to report or how does this work? Any help would be appreciated. Tax time is near.
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Re: Does Ebay or Paypal report our sales to IRS?

What I don't get is how it's traceable income if I'm not receiving a check or wire transfer from Paypal. If I sell on ebay and use my paypal account to spend that money back on ebay, it should be no different than trading **bleep** at Gamestop. Are they going to notify the IRS when we trade too many games for store credit too at some point?
Message 166 of 236
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Re: Does Ebay or Paypal report our sales to IRS?

No, because you're never going to make a profit trading games at Gamestop.  You're always going to have a loss.
Gamestop is the one that's making profit, not you.

Message 167 of 236
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Re: Does Ebay or Paypal report our sales to IRS?

Although now that I think of it, some of these credit card deals with points & cash back credit & dining gift cards?

I bet those things will get taxed in the next few years.

Depends on how influential the Amazon Prime lobbyists are.

Message 168 of 236
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Re: Does Ebay or Paypal report our sales to IRS?

Anonymous
Not applicable

I received a form from PayPal stating I was paid $38,000.00 in 2014  Then I received an income tax bill for $14,000.00 for unreported income and fines.  I never received this in 2013,2012,2011 and etc.  I also spent about the same for supplies and stock, postage and etc.  My net income came to $2.500.00  I do ebay for fun and it's my social outlet after a hard day at my full time job.  I replied to the letter by sending them the 5 pounds of receipts and a copy of every transaction.  I pray I do not owe the entire $14k they are seeking. Nice how our govermant is spending time investigating hard working Americans who only want to make a few bucks and a few friends on Ebay.  Why don't they go after and spend money on the real problems in this country like terrorists, drugs, murderers, rapists, and etcccccc.  Just venting.  Thanks for listening - Sandras Vintage Time - my ebay store

Message 169 of 236
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Re: Does Ebay or Paypal report our sales to IRS?


@Anonymous wrote:

...  Why don't they go after and spend money on the real problems in this country like terrorists, drugs, murderers, rapists, and etcccccc. ....


Well, they ARE going after money!  Your money!  And mine!  So they can spend it.

 

Glad to hear you kept receipts! With receipts you have proof so it will probably go OK. Best of luck!

Message 170 of 236
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Re: Does Ebay or Paypal report our sales to IRS?

I helped a friend sell things in 2012 and I was going to have my taxes amended as I made a mistake (not related to these sales). However, the tax preparer informed me of this paypal sales over 20000 and if we were to amend that the IRS may say I need to pay taxes on that amount even though I didn't get any of that money. I am going to talk with the person who I helped, but wondering if anyone else has been in this situation. tax preparer informed that things could go either way...the IRS takes it off my account and sends it to the person who I helped or I would be accountable for this amount and then need to pay taxes (they haven't audited me for this amount)

 

Please advise if you have been in this situation. 

 

Sara

Message 171 of 236
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Re: Does Ebay or Paypal report our sales to IRS?

me too , paypal do not send me a 1099K form, now i received an income tax bill for $29,000/year, IRS require me to pay $14,000 included penanlty refund money that government give 2 children last year .i don't know why ebay , paypal do not notice us about this, i think you right , i want to say goodbye ebay
Message 172 of 236
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Re: Does Ebay or Paypal report our sales to IRS?

Make sure you dont exceed more than 200 sales or $20,000 sales whichever comes first . And if you do business on ebay make sure you keep all reciepts such as postage, original reciepts. Or you you sell old stuff with no reciepts you loose so, its better to sell just few not exceed 200 sales or if sell cars for cost 20,000 dollars , Paypal will report to the IRS. If you have large family , ask them if you can use thier SSN numbers for few sales . Paypal is very quite about this and they do not let people know or even send customers a mail form 1099 .
Message 173 of 236
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Re: Does Ebay or Paypal report our sales to IRS?

Paypal will based on you SSN or EIN . You could close your paypal account and they still report you no matter what because it is in their record base on your SSN .
Message 174 of 236
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Re: Does Ebay or Paypal report our sales to IRS?

So sorry for those who sells old stuff , or sells garage stuff, how can you find the old reciepts to report to the accountants as an expense,?
Message 175 of 236
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Re: Does Ebay or Paypal report our sales to IRS?


@lovelywatchforyou wrote:
Make sure you dont exceed more than 200 sales or $20,000 sales whichever comes first . And if you do business on ebay make sure you keep all reciepts such as postage, original reciepts. Or you you sell old stuff with no reciepts you loose so, its better to sell just few not exceed 200 sales or if sell cars for cost 20,000 dollars , Paypal will report to the IRS. If you have large family , ask them if you can use thier SSN numbers for few sales . Paypal is very quite about this and they do not let people know or even send customers a mail form 1099 .

Oh, so it's OK if you make over $20K not to pay taxes by spreading out the income over family member SSNs? 

But all us minimum wage workers who make even less than that per year get to pay full freight, so we're the chumps funding the military, social security, healthcare for you?

What a mooching freeloader.

 

Message 176 of 236
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Re: Does Ebay or Paypal report our sales to IRS?


@janies_bizz wrote:
I just started selling on Ebay and Im a little worried about reporting my extra little income. Its not that much but is there like a certain amount that I have to make for them to report or how does this work? Any help would be appreciated. Tax time is near.

Yes, you are required to file all income.  Also, several states require you to pay taxes from buying out of state on purchases you bought on the web is recorded.  Remember, everything you do on the computer is recorded. 

Message 177 of 236
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Re: Does Ebay or Paypal report our sales to IRS?

Do I need to apply Tax Registration certificate if I file my income on schedule C?  I read online they will let you pay large amount of penalty if you failure to register . But I don't think all the ebayer realize this .


@kansas_gal06 wrote:

@Anonymous wrote:

...  Why don't they go after and spend money on the real problems in this country like terrorists, drugs, murderers, rapists, and etcccccc. ....


Well, they ARE going after money!  Your money!  And mine!  So they can spend it.

 

Glad to hear you kept receipts! With receipts you have proof so it will probably go OK. Best of luck!


 

Message 178 of 236
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Re: Does Ebay or Paypal report our sales to IRS?

May I ask do you apply for tax registration certificate? do they require to have it if your activities as business?

Message 179 of 236
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Re: Does Ebay or Paypal report our sales to IRS?

Minimum wage(artificial wage), peace time military(policing the world), social security(ponzie scheme), healthcare(redistribution) are usually the reasons people don't pay taxes.


If excise taxes aren't enough, it's because the budget isn't efficent; more taxes are just more money thrown away.

Message 180 of 236
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