Does Ebay or Paypal report our sales to IRS?

[janies_bizz]

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.

[loveyourimagination49]

This thread started in 2009, you are responding to a post from 2010.

[dig_in_and_dig]

From wordpress dot com:  

Paypal Required To Report Payment Transactions To The IRS

August 10, 2008 by dfalv38

If you are selling your crafts online, whether on eBay, Etsy or anywhere else, you should be reporting your sales to the IRS. The upside of reporting your additional income to the IRS is that you can also write off expenses and as we know, there are many–materials, space in your home that you use specifically for your craft, computer equipment, etc.

It’s not the best idea to run your business online and think the IRS will never catch up to you because you’re just a little guy.

It was recently announced that Paypal will be required to report payments to the IRS each year, starting in 2011. Paypal is one of the easiest shopping carts to use, and if you are selling on eBay or Etsy, I would be really surprised if you aren’t using it.

Under the new legislation, PayPal will be required to report to the IRS the total payment volume received by PayPal customers in the U.S. who:

1. receive more than $20,000 in payment volume in a single year; AND
2. receive more than 200 payments in a single year.

Both requirements must be met for Paypal to be required to report payments. And I would think that this is just the beginning.

If you are doing business online, be smart and safe and report your income. And then take the deductions that come along with being in business too!

[stlawrivwf]

If you sell on ebay anyone can access your sales. Which means someone wanting to do harm

[stlawrivwf]

If someone reports you to the IRS, eBay makes it very easy for the IRS to view what you sold on a monthly basis. So if you are a successful seller on ebay or any other auction site it could be costly to you if you are audted. Good luck.

[vettenut2]

I have lots of toy that were bought in the past and most sell at a large loss but I don't have receipts to prove it so I have to stay under the limit. $20,000 and that includes the selling price plus the shipping cost. This is hard because I can only sell for a few months before I reach that limit. Ebay is going to stop using paypal and start with Amsterdam-based Adyen, so I wonder how they will handle it with reporting to the IRS.

[vettenut2]

Yes, and that 20,000 is selling price plus shipping.

[thatsallfolks]

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@vettenut2 wrote:
I have lots of toy that were bought in the past and most sell at a large loss but I don't have receipts to prove it so I have to stay under the limit. $20,000 and that includes the selling price plus the shipping cost. This is hard because I can only sell for a few months before I reach that limit. Ebay is going to stop using paypal and start with Amsterdam-based Adyen, so I wonder how they will handle it with reporting to the IRS.

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You do know that the IRS randomly audits people, right? How would you explain $19,000 of income?

[lillys*pad]

So does anyone have information for 2018?

[thatsallfolks]

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@lillys*pad wrote:
So does anyone have information for 2018?

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Yes. Report your income. What else do you need to know?

[elliottcatt]

Oh yes paypal gives 1099k to irs!!

[michigansupersellers]

Sorry to bug you, but I just have a quick question. You mentioned in 2016 that you've been hit twice by the IRS (I imagine form CP2000) for not reporting 1099k. What was the time frame of when they notified you? For example, did you receive 2016 before 2015? Was it months or years apart?