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cmagichappen
Community Member
Posts: 1
Registered: ‎01-20-2010

Re: Does Ebay or Paypal report our sales to IRS?

in reply to janies_bizz

There is a LOT of craziness, misinformation, panic, dread and confusion about the IRS and PayPal/eBay.  After a LOT of searching because I'm thinking of selling again, this is what I found:

-There is NO info on the IRS site that specifically mentions PayPal...of course not.

-Searching Google, I found a PayPal page written in 2011...

 https://cms.paypal.com/us/cgi-bin/marketingweb?cmd=_render-content&content_ID=marketing_us/IRS6050W  From this page: 

"PayPal will track the payment volume of your account(s) to check whether your payment volume exceeds both of these levels in a calendar year:

  •   $20,000 USD in gross payment volume from sales of goods or services in a single year
  •   200 payments for goods or services in the same year

You may be asked to add your tax ID number, such as a Social Security Number (SSN) or Employer Identification Number (EIN), to your existing account(s), if you don’t already have one on file.

If you cross the IRS thresholds in 2012, PayPal will send Form 1099-K to you and the IRS for the 2012 tax year in early 2013."

 

-Why did some of you get letters from the IRS when you didn't come near the TWO specifications listed above???  My only guess...THEY are the IRS.  https://cms.paypal.com/us/cgi-bin/marketingweb?cmd=_render-content&content_ID=marketing_us/IRS6050W

 

-Doing a search today for Internal Revenue Code (IRC) Section 6050W at the top of the PayPal page, this is what I found:

 https://www.paypal.com/webapps/helpcenter/helphub/search/ which refers you to PayPal IRS 6050W website.

 

Now that I've depressed myself and most of you, let's hope we don't continue to starve!

 

 

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Community Member
Posts: 1
Registered: ‎05-14-2014

Re: Does Ebay or Paypal report our sales to IRS?

in reply to hondamedic
There's too many people with the same name for them to just put a social security number to a name.
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billy_biggle_fan
Community Member
Posts: 1,730
Registered: ‎12-11-2005

Re: Does Ebay or Paypal report our sales to IRS?

in reply to midgee1924

All income from eBay sales is taxable, 1099 or not.  But the IRS generally doesn't care about a few sales made a year.

 

There should be no reason that you are paying double taxes on items sold.  If you fill out a Schedule C, you can write off your acquisition and selling costs, and only pay taxes on your profit.  That's as it should be, since any profit is a capital gain.

 

eBay and PayPal do have paid lobbyists: http://www.ebaymainstreet.com/

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Community Member
Posts: 1
Registered: ‎05-12-2014

Re: Does Ebay or Paypal report our sales to IRS?

in reply to chippiesavalanche

typical response from a company man.

Expect a 1099 from ANY & ALL sales.

If you sell on craigslist, you can avoid this, BUT

You also risk being ripped off in buying goods (paypal & eBay offer seller protection)

and you have to deal with the local public on craigslist, unless you offer to sell outside your locality and accept money orders, cashier's checks or personal checks.

What I hate is that even though I bought and paid taxes on new stuff, when I sell it, it gets taxed again!

NOT FAIR.

Paypal & eBay should have paid lobbyists/politicians more to avoid this!!!  It used to be you would not get a 1099 unless you sold $20,000 or more. But now, expect to get one for any sales, period!

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rasothavas
Community Member
Posts: 3
Registered: ‎02-10-2011

Re: Does Ebay or Paypal report our sales to IRS?

in reply to printedtshirts

Dead link

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komokwa
Community Member
Posts: 6,088
Registered: ‎03-26-2003

Re: Does Ebay or Paypal report our sales to IRS?

in reply to localcheapstuff

now that you've posted on this thread the IRS is going to be looking at you very closely !

 

 

 

 

 

 

 

NOT   !!!  ........................................................... LOL !



Who will save the river valley , that's my drinking water.! "Moxy Fruvous"
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localcheapstuff
Community Member
Posts: 1
Registered: ‎06-01-2012

Re: Does Ebay or Paypal report our sales to IRS?

[ Edited ]
in reply to janies_bizz

..

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hondamedic
Community Member
Posts: 7,002
Registered: ‎06-05-2005

Re: Does Ebay or Paypal report our sales to IRS?

in reply to barbara8463

 

Good morning Barbara and welcome to The Part Timers Forum.

There is no need to defend your actions here. While I'm not a tax adviser, I do recommend you review these help pages, you might be surprised to find out you're fine and dandy!

 

http://www.irs.gov/Businesses/Small-Businesses-%26-Self-Employed/Tax-Tips-for-Online-Auction-Sellers

http://www.irs.gov/uac/Business-or-Hobby%3F-Answer-Has-Implications-for-Deductions

 

http://www.irs.gov/uac/Is-Your-Hobby-a-For-Profit-Endeavor%3F

 

Hope this helps!


BBL: Blocked Bidder List... BIN: Buy It Now... BO: Best Offer... BR: Bid Retraction... DC: Delivery Confirmation

DSR: Detailed Seller Rating FB: Feedback FRB: Flat Rate Box FVF: Final Value Fee IPR: Immediate Payment Required

NARU: Not A Registered User OP: Original Poster OT: Off Topic PM: Priority Mail.... PS: Power Seller....

SNAD: Significantly Not As Described...... TRS: Top Rated Seller...... UIA: Unpaid Item Assistant..... UID: Unpaid Item Dispute
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Community Member
Posts: 2
Registered: ‎01-07-2014

Re: Does Ebay or Paypal report our sales to IRS?

in reply to janies_bizz

I just started selling a little bit again after several years.  I didn't report my income from ebay then and I won't report it now.  I do not have an ebay store - if I did I would expect there would be reporting requirements.  I am just an ordinary citizen selling something I already own.  I am converting an asset from a non-cash form to cash.  I am not receiving an income.  If I have a yard sale every weekend am I supposed to report that conversion of my assets to the IRS as income.  To me this is no different, except I don't have to pay fees to sell from my front yard. 

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komokwa
Community Member
Posts: 6,088
Registered: ‎03-26-2003

Re: Does Ebay or Paypal report our sales to IRS?

in reply to renegade9510

and add a deduction for tax upon monthly seller fees

 

cuz ther'd be a riot!



Who will save the river valley , that's my drinking water.! "Moxy Fruvous"
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Community Member
Posts: 37
Registered: ‎07-16-2012

Re: Does Ebay or Paypal report our sales to IRS?

[ Edited ]
in reply to janies_bizz

I honestly don't see why our sales aren't being reported for us. How much do you want to bet half the sellers here are unaware of this taxation? I didn't know about it until I was browsing on here just today!! Luckily though I don't meet the said criteria for the tax.

 

They should be doing the work for us. Plus ebay themselves get 10% of every transaction which is ridiculous as is. To make it easier, why doesn't ebay link us to a 1099 when we begin selling and add a deduction for tax upon monthly seller fees?? Common sense you'd think? No, life is always confusing. Always has been.

 

Enough ranting for me :smileywink:

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hondamedic
Community Member
Posts: 7,002
Registered: ‎06-05-2005

Re: Does Ebay or Paypal report our sales to IRS?

in reply to bronx-dog

bronx-dog wrote:

 

However, the Chinese Government did secretly download our sales from Edward Snowden's laptop. The information was given to that country's Mega Sellers, who have been laughing their pineapple chicken balls off, ever since. 


 

 

ROFL photo rofl_zps43a5875b.gif photo smiley-laughing001.gifROFL photo rofl_zps43a5875b.gif photo smiley-laughing001.gif
BBL: Blocked Bidder List... BIN: Buy It Now... BO: Best Offer... BR: Bid Retraction... DC: Delivery Confirmation

DSR: Detailed Seller Rating FB: Feedback FRB: Flat Rate Box FVF: Final Value Fee IPR: Immediate Payment Required

NARU: Not A Registered User OP: Original Poster OT: Off Topic PM: Priority Mail.... PS: Power Seller....

SNAD: Significantly Not As Described...... TRS: Top Rated Seller...... UIA: Unpaid Item Assistant..... UID: Unpaid Item Dispute
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Community Member
Posts: 7,230
Registered: ‎10-19-2004

Re: Does Ebay or Paypal report our sales to IRS?

in reply to 123-jojomartin

123-jojomartin wrote:
I called paypal. They are the ones that send 1099 to you ONLY if you meet two requirements. Making $20,000 and receiving payments of 200 or more. It has to meet BOTH not just one

Thanks for reviving the thread as we close out 2013. The bottom line is STILL that you have to report your eBay income, WHETHER OR NOT you receive a 1099.

 

I still don't get the hangup about the 1099, unless people are trying to evade taxes.

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bronx-dog
Community Member
Posts: 5,650
Registered: ‎01-20-2011

Re: Does Ebay or Paypal report our sales to IRS?

in reply to janies_bizz

Does Ebay or Paypal report our sales to IRS?

 

The odds of any of us, Part-Time Sellers, meeting the

criteria for being reported is slim, to remote, at best.

 

However, the Chinese Government did secretly download

our sales from Edward Snowden's laptop. The information

was given to that country's Mega Sellers, who have been

laughing their pineapple chicken balls off, ever since. 

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Community Member
Posts: 5
Registered: ‎08-13-2011

Re: Does Ebay or Paypal report our sales to IRS?

in reply to janies_bizz
PayPal are the ones that send you a 1099. You have to reach BOTH of these requirements before they send you one. You have made $20,000.00 up AND you have
200 payments made to you. It has to meet BOTH requirements.
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Community Member
Posts: 5
Registered: ‎08-13-2011

Re: Does Ebay or Paypal report our sales to IRS?

in reply to janies_bizz
I called paypal. They are the ones that send 1099 to you ONLY if you meet two requirements. Making $20,000 and receiving payments of 200 or more. It has to meet BOTH not just one
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hondamedic
Community Member
Posts: 7,002
Registered: ‎06-05-2005

Re: Does Ebay or Paypal report our sales to IRS?

in reply to janies_bizz

 


Has anyone signed up for eBay's APP, Outright?

Sounds interesting..


 


Stay on top of your 2012 taxes—sign up for a FREE Outright account. Outright automatically organizes all of your eBay, PayPal, bank and credit card transactions in one place, so that you can get prepared for tax time. And, if you're going to receive a 1099-K from PayPal, Outright has a Tax Resource Center that can help you understand how that 1099-K affects your 2012 tax situation. Visit the resource center and sign up for your FREE account today.

BBL: Blocked Bidder List... BIN: Buy It Now... BO: Best Offer... BR: Bid Retraction... DC: Delivery Confirmation

DSR: Detailed Seller Rating FB: Feedback FRB: Flat Rate Box FVF: Final Value Fee IPR: Immediate Payment Required

NARU: Not A Registered User OP: Original Poster OT: Off Topic PM: Priority Mail.... PS: Power Seller....

SNAD: Significantly Not As Described...... TRS: Top Rated Seller...... UIA: Unpaid Item Assistant..... UID: Unpaid Item Dispute
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Community Member
Posts: 1
Registered: ‎03-16-2009

Re: Does Ebay or Paypal report our sales to IRS?

in reply to janies_bizz

It is my understanding that you must meet both the 200 items and the 20,000 in sales.  The $20,000 includes the shipping and funds that are part of your ebay sales.  I read this on Paypal. 

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intrepidzebra
Community Member
Posts: 25
Registered: ‎04-09-2012

Re: Does Ebay or Paypal report our sales to IRS?

in reply to janies_bizz

I work with Outright, an eBay preferred bookkeeping program, and you definitely need to report your income, whether you got a 1099-K or not. Fortunately, it doesn't have to be as expensive as some people are posting on here. If you use Outright to keep track of ALL of your income and expenses, then Outright Plus will help you fill in your Schedule C at the end of the year. Some people then use that with Turbotax, others take it to an accountant, etc. 

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eliteautomobile
Community Member
Posts: 142
Registered: ‎09-12-2008

Re: Does Ebay or Paypal report our sales to IRS?

in reply to janies_bizz

Take this advice or not. Treat your ebay hobby biz like self employment. If you make over 400 USD in a year report it on your Taxes. Also if your selling a product alot of it. (your not selling the once in a blue moon sale) Get a tax ID number for the state in which you sell out of and pay your sales tax. The goverment is broke eventally they will start looking for the tax money.


 


Just my 2 cents

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