mam98031 • Volunteer Community Member • Buyer/Seller since 1999
I am planning on winding down my Ebay store this Fall. Just found out that by October there will be 21 states in the Union paying online sales tax. That is going to kill online sales. Also by 2020 all the states in the union will charge internet sales tax. Those good ole days of no internet sales tax are over. Paypal and Ebay are already separate,but Ebay will be setting up separate accounts for Sellers and their income tax. Just not something I want to get into. Hope everyone is getting ready for the big change coming. Info was from Ebay. 
@slippinjimmy wrote:they act like they're "winning" by stealing from the government.
The are actually stealing from other taxpayers who have to make up for the shortfall.
The OP is basically saying "I don't pay taxes, I let other people pay them for me" and they are saying this directly to the "other people".
And they likely use the public roads we pay for and many other things that the people that actually pay their taxes pay for.
This is not to say that most of us take every single deduction we can find. I know I look for every single itty bitty thing I can deduct so that I can reduce my taxes, but I have ALWAYS paid my taxes on my income. It matters not to me if a 1099 was generated by some company in support of what I earned through that site. The 1099's for internet sales has only been around the last handful of years. I've been selling on multiple sites for a couple decades now. And my sales from ALL sources has always been represented / reported on my federal tax returns.
@faithfashionfriends wrote:
I appreciate your kinds words. At least your not bashing and just throwing stuff out there. I mean the things is lets be honest here. HARDLY ANYONE ON EBAY PAYS TAXES. I mean we can go all day and jump out and say this and that,but probably only about 30% of Sellers at the most on Ebay pay taxes. I would bet anyone a $100 on that one. It is not my business though. I don't care. I mean you gotta do what you gotta do. It is tough out there. The thing is you only pay taxes on your PROFIT anyway not on YOUR what you SELL. Then you have to subtract all your expenses. There is alot you can subtract also. THANKS SO MUCH FOR YOUR INPUT!
As I've said, I have always, from the day I started selling on the internet, claimed my income on my Federal Income Taxes every year. I of course take deductions for what I can. That is normal for any business, big or small.
Because other people may choose to take the risk to evade paying taxes is NO defense for others. I have no idea what percentage of sellers claim their sales here on their income tax reports nor do you. Your guess may be accurate and it may not be. You nor I have any way of knowing that. I suppose it can be used as a way to justify to yourself why you don't claim the income. But like I say, if you get caught it won't be a defense that will get you very far.
@faithfashionfriends wrote:IRS can only go back 3 years.
Not exactly.
Generally, the IRS can include returns filed within the last three years in an audit. If we identify a substantial error, we may add additional years.
https://www.irs.gov/businesses/small-businesses-self-employed/irs-audits
@faithfashionfriends wrote:You only pay taxes on profit. My profit is about zero after my expenses.
Then you shouldn't be fighting claiming your income on your yearly taxes. Seems like a no brainer to me. Why risk penalties if there is no need to risk it.
@faithfashionfriends wrote:IRS can only go back 3 years.
They can go back twice that long if they find you have not been reporting income correctly.
