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Community Member
Posts: 3
Registered: ‎12-03-2008

Does Ebay or Paypal report our sales to IRS?

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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Community Member
Posts: 18
Registered: ‎08-04-2005

Does Ebay or Paypal report our sales to IRS?

in reply to janies_bizz
Greetings!

if you make any money, even $1, you are technically required to report it on your taxes.

ebay and paypal currently do NOT report numbers to the IRS.

ultimately, you need to contact an actual tax professional (i dont mean jackson hewitt or hr block, more like an accountant type)

also, go to IRS.GOV, and search on schedule c
and also search on reporting misc income.

hope this helps
michael
chippies logo
Closing the Recycling loop: Reuse
Sale of New and Used Electronics and Computer items.
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Community Member
Posts: 3
Registered: ‎12-03-2008

Does Ebay or Paypal report our sales to IRS?

in reply to janies_bizz
Thank you Thank you thank you Chippie!! Glad Im saving all my reciepts for shipping etc.
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Community Member
Posts: 16
Registered: ‎04-30-2007

Does Ebay or Paypal report our sales to IRS?

in reply to janies_bizz
Isn't there talk of Ebay starting to report sales in 2011?

Kelly
*
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*Kelly*

Find a cure for "Entitlement Syndrome" FAST
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Community Member
Posts: 1
Registered: ‎02-26-2009

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

in reply to janies_bizz
I found this at this link:

http://ebay-stores-etc.blogspot.com/2008/08/paypal-has-to-report-to-irs-ebay.html

Paypal Has To Report To IRS (eBay Sellers)
The new Housing and Economic Recovery Act signed into law requires Paypal and others to report to the IRS. This law will take affect in 2011 and will be reported in 2012 for the 2011 tax year.

You are excluded from having your info reported if:

1. If you receive less than $20,000 a year in payments; and
2. If you have less than 200 payments.

You will have to make sure you keep good records. For more information visit the offical Paypal Blog for more information.
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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
Thanx kaixote! good stuff.....
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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kevjay777
Community Member
Posts: 8
Registered: ‎04-24-2008

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

in reply to janies_bizz
I realize this is nearly a year old, but since it is still very much relevant thought I would ask.

Will the reporting will be retro'd back to previous tax years, as sort of a "sneaky audit" to see if anyone may have forgotten to report some income?

Not that Ebay and the IRS would ever do such a thing. Eyes rolling.
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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

Hi KevJay & welcome to The Part Timers Forum!


First is Kudos for looking for previous topics about this issue. Next is eBay/PayPal is suppose to start reporting in 2011. The issue here is are they reporting every seller to the IRS? All 25 million of us? And what will the IRS do with this info? Considering they've closed offices/cutback employee numbers who will look at this info? While I'm a pretty stand up honest guy I do not report my income from eBay. I spend enough time keeping my listings current & my customers happy. If I had time to be entering all my expences into QuickBooks so I could deduct them I wouldn't be holding down a full time job.

So to answer your question, no they will not be retro_ing previous years to the IRS. If you feel the need to pay income taxes on the monies you get from eBay please do so.

I'd love to know how many non-paying taxes illegal aliens will get reported? http://www.debbieschlussel.com/10619/outrage-ebay-yanks-illegal-alien-costume-for-sale-by-secure-borders-group/

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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plants_and_stuff_dot_com
Community Member
Posts: 13
Registered: ‎12-01-2011

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

in reply to janies_bizz
I found this at this link:

http://ebay-stores-etc.blogspot.com/2008/08/paypal-has-to-report-to-irs-ebay.html

Paypal Has To Report To IRS (eBay Sellers)
The new Housing and Economic Recovery Act signed into law requires Paypal and others to report to the IRS. This law will take affect in 2011 and will be reported in 2012 for the 2011 tax year.

You are excluded from having your info reported if:

1. If you receive less than $20,000 a year in payments; and
2. If you have less than 200 payments.

You will have to make sure you keep good records. For more information visit the offical Paypal Blog for more information.

OK, does anybody know the answer to my question? Becasue this seems awfully fishy in the way its worded. I dont make anywhere near $20,000 but im certain I have more the 200 payments.
Will I still be reported?

I am not worried about a small tax. The problem is that Im on social security disability and am not allowed to work or they will take dollar for dollar and or cut me of completly. I dont make near enough to live off of ebay sales alone but they do help make life mor comfortable so Im worried about being reported.
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Community Member
Posts: 15
Registered: ‎04-01-2011

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

in reply to janies_bizz

OK, does anybody know the answer to my question? Becasue this seems awfully fishy in the way its worded. I dont make anywhere near $20,000 but im certain I have more the 200 payments.
Will I still be reported?

I am not worried about a small tax. The problem is that Im on social security disability and am not allowed to work or they will take dollar for dollar and or cut me of completly. I dont make near enough to live off of ebay sales alone but they do help make life mor comfortable so Im worried about being reported.


Seek the advise of a local CPA so you will know the advise you are seeking is being given to you right. Make sure they are experienced with online sales.

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blue-vintage
Community Member
Posts: 343
Registered: ‎05-30-2003

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

in reply to janies_bizz
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ingeniouskha
Community Member
Posts: 856
Registered: ‎11-02-2009

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

in reply to janies_bizz
Thank you for sharing. I didn't know this. :smileyhappy:


https://www.thepaypalblog.com/2008/08/proposed-irs-reporting-requirements-become-law/

Here's the low down.


Carry the REAL thing
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Community Member
Posts: 15
Registered: ‎04-01-2011

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

in reply to janies_bizz
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Community Member
Posts: 15
Registered: ‎01-11-2009

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

in reply to janies_bizz
Any of you remember giving pay pal your social security number when you signed up?
No Bad Days Pictures, Images and Photos
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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

No, but it's a simple process for a buisness to get them... Just file name with a credit reporting company: http://www.equifax.com/home/en_us
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: 15
Registered: ‎01-11-2009

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

in reply to janies_bizz
So credit reporting agencies hand out our social security numbers when a business asks for them? That's interesting.
No Bad Days Pictures, Images and Photos
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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

Maybe I was mistaken & they don't get them from Credit Reporting Agencies. Lifted from this URL: http://www.privacyrights.org/fs/fs10-ssn.htm#11

SSN required by federal law. Federal law requires private businesses to collect your SSN when (1) you are involved in a transaction in which the Internal Revenue Service requires notification, or (2) you are engaged in a financial transaction subject to federal Customer Identification Program rules (see below “Why do financial transactions require my Social Security number?”, http://www.privacyrights.org/fs/fs10-ssn.htm#14).

So they get them from the Federal Gov? Dunno... I do know all businesses can get them easily... And hackers get from the businesses!

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: 40
Registered: ‎01-19-2010

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

in reply to janies_bizz
How do they know it's the right person, not someone with the same name? There are two other people in my town that have the same name as my boyfriend, not he's not related to either. The people who owned our house before us had the same last name as him, too. There not related either.
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blue-vintage
Community Member
Posts: 343
Registered: ‎05-30-2003

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

in reply to janies_bizz
How do they know it's the right person, not someone with the same name? There are two other people in my town that have the same name as my boyfriend, not he's not related to either. The people who owned our house before us had the same last name as him, too. There not related either.


Same name maybe but they have differentt birth dates, place of birth, places of employment, addresses, etc. The CIA has nothing over the IRS.
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blue-vintage
Community Member
Posts: 343
Registered: ‎05-30-2003

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

in reply to janies_bizz
BTW, If you have the type of acct. with paypal where you earn interest then they already have your SS#.
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