on 09-14-2013 05:11 PM
Ebay sends 1099 forms to all sellers that exceed $20K in total income (including ship fees), AND have over 200 items sold.
Less than that does not get automatically reported, but you can bet that the IRS has access to all sales numbers if they want. I wouldn't attempt to hide anything.
on 09-14-2013 05:35 PM
eBay doesn't send any income or tax information to you, the IRS, or anybody else.
Paypal is required to send you (and the IRS) a 1099-K form IF you have over 200 transactions AND take in over $20,000.
Here's the IRS page for "online auction sellers". Also look at Schedule C and its instructions.
on 09-14-2013 05:13 PM
All the money you collect will go to IRS via Paypal. It will be up to you to keep good records. On each auction, you need to remove cost of goods, your postage paid, eBay fees, final value fees, store fees, insertion fees. Keep a good mileage record to and from the post office to take the cost of travel off. Those are a few items that come to my head. But, as you keep your records you will get a better feeling on what you need to exclude. I know I have not given you all the items, but a few that is on the top of my head. In addition, you will also pay your state and any local tax.