IRS wants eBay to turn on its customers

Remember the IRS makes the rules as they go along. If they see where you have profited they will attemot to take their cut. If you resist by calling yourself a business and claiming costs / deductions and re-file for preceeding years, they will deny your business status for the years prior to the profit and force you into going to court as a last resort. If your records are sufficient you can win but the lawyer fees will likely eat up any proceeds you get. The main thing you must remember here is that you need accurate records going back as far as the statuate of limitations allows them to go, or you will be screwed. The first thing they will do in an attempt to get you to capitulate is lock you out of your bank accounts and deny you your operating capital and they can hold out a lot longer than most people.
Tim T

I am an ebay power seller and I hold a business license and a federal tax payer ID number which allows me to buy wholesale. I’ve been successful on ebay and I sleep well at night because I conduct my business fairly and legally. It’s a business after all. I don’t believe the IRS is looking for those of you that are selling the ugly sweater that aunt Betty gave you for Christmas. They are rightfully looking for those proprietors that are making hundreds or hundreds of thousands a week on eBay. Those guys that don’t report their income probably are beginning to feel a little uncomfortable when they are transferring $$$$$ to their accounts from eBay sales. If you are a business and don’t want to pay taxes like a business you need to sell on a street corner. And don’t forget that as a legitimate tax paying business the IRS gives you plenty of write offs only afforded to the business community. Consult your tax professional!

i have mixed emotions on this issue....i feel sellers should be paying taxes on their income but only on their actual profit.....as for taxing buyers, that is a whole other kettle of worms as each state has different tax structures....then the buyer has to keep records on each state they sell to....what a nightmare....i was considering becoming a seller but i think i will wait til this issue is settled...i believe in paying my fair share of taxes, that is what runs this country....but lets be sensible about it....

A lot of eBay sellers are people who are selling their own possessions that they no longer have a need for. These are items that they purchased with monies that they already have paid income taxes on. In most instances they receive less than what they spent to purchase the item. Why should they have to pay income tax where there is no income involved?

To all of you did you not know that it is we thee IRS and not WE the people it is time that we the people got them out of office.

Ebay for many is nothing more than a global yard sale, with many people cleaning out their dust ridden garages & attics. So what's next? Will the IRS begin community foot patrols in all 50 states? Will they become the local flea market gestapo?

If they want to tax the sales, does that mean I get to right off the loss. Say I sell my Mobil home for $30,000, but I paid $40,000 3 years earlier. Do I get to write off the loss. It is not different then buying at a Garage Sale. No federal Tax is paid then either. Why pay taxes just because it is on e-bay. I sell used items on E-bay, I should not have to pay federal tax on Used Items. I could see if they are new items. Just onen more way to turn the country toward a DICTATORSHIP.

The IRS is nothing more than a bunch of theives. Most stuff sold on ebay is used and guess what, when the original person bought it they paid sales tax. What happend to "no double taxation"?? What a crock of shit. I am tired of them raping everyone on anything they can get their damn hands into. Frankly, as long as you pay your fair share, then your money should be none of their damn business. You work for it, not them. Then they come out and say that they can't be audited...gee why not? Because they are more corrupt than anyone else and the records are probably full of errors.
The over taxing of the citizens of this country needs to be stopped. We are already at about 45-50% by the time you pay income tax, sales tax and state income tax. How much more do they freaking need?

If the gov't starts taxing EBay another site just like it will open up overseas where the Gov't cant get to. This will hurt EBay and force us to use an overseas auction site. Further why should I pay tax on something I am selling on EBay hell I paid tax on it when I bought it. So lets see I paid tax on the money I earned then again when I spent the money and now they want me to pay again when I sell the item I bought. Christ thats triple tax forget it. Ken

Okay eBay, turn me in. First of all, that car I sold on eBay for $6,000.00 wasn't mine. Guess you will piss someone else off in the process. Secondly, you have got to be kidding me. I have lost more money and barely ever broke even selling my crap on eBay compared to advertising that merchandise as "HOT" and selling them on the streets of Detroit. Lastly, eBay better have a very detailed transaction history of what I sold on their WebSite and if its correct, it will match up to mine. Be PREPARED Internal Revenue Scammers when I file my NO PROFIT and BIG LOSS STATEMENT. I could actually use another write off. I've always hated the IRS, but when I can stick it to them instead of vice versa...the hell with 'em. Bring it ON!!!

Ohio must charge sales tax on auctions already, so I am suprized they haven't gone after ebay already.

I have been a seller on ebay and fighting with them for unjust charges, etc since they started. They are arrogant, ignorant and unaccessible for these reasons. They apparently have no published phone numbers prefering to hide behind emails whenever they feel like communicating at all. Try to get any money back from them is the same as trying to get them to pay their taxes. If I sell a car on ebay, the state it gets registered in collects their taxes when it is registered. Income tax is another matter. Will I now have to keep records on all my car expenses so I can prove to IRS I lost money on selling a car, or made money selling a car. Do I get to deduct losses? I think not!!

Shame on this adminstration for yet one more attempt to releave us of a simple pleasure of selling a second hand item, How low can they go??
The people in this country need to understand that we are not all just a flock of dumb assed sheep, Blindly following the rules.
This blindness is what has allowed this type of taxation in the past, We all live in our own little world and let the issues that affect our lives just go unattended and forgotten....That type of behaviour is what led us to this pile of dung we call the I.R.S today.
Wake up and smell the coffee, If we as taxpayers allow this to happen then in my opinion we will someday be taxed in the bedroom with BIG BROTHER WATCHING!!!!!!!!!!WAKE UP AND VOTE AMERICA!!

I was reading some of the comments and got a chuckle out of this one:

12. This is completely ridiculous!!! I hate paying my taxes as much as the next man, but come on IRS does you have to mingle in everything? next you will be taxing us for using "your air" to fart in, this is outrageous!!!!

To me, it appears that no one considers that the funds that move today is used tomorrow and the next day then the next, etc. Out of each move, the IRS is supposed to get a %. Movement without taxation (evasion) in say, one year, ends up being probably close to .000001% of what the IRS really collects on that $.

Those who don't pay taxes by LEGALLY manipulating the system is NOT cheating. In fact, they move more money (circulating) than others, in order to maintain NON taxable status. That kind of circulation is the SOLE provider of ECONOMIC STIMULATION and rates the importance that is close to that of water and air.

Black market stimulation: many years ago, some genius calculated that without the black market, our economy would fail. Since I heard and thought about that, I have viewed the system in a far different perspective that is what I would consider "healthy". That summation was in fact accurate. In fact, revenue collectors put on a window dressing presentation while allowing cash to flow freely via the black market.

Black market:
Unreported sales via Ebay
Carnival help
Yard Sales
even drugs

First hand, when the carnival comes to town and hires hundreds of locals who are available to work 10 to 15 hour shifts for short cash, they are not taking people from their 9-5 job but those who are most likely collecting SSI or some form of welfare, or "illegal" (sited the more popular term on the Internet these days). Those illegal jobs are no different than paying the boy next door to mow your lawn who I doubt is claiming his income to the IRS. However, the chances are that the boy spends his $5 at the candy store or gifts for moms birthday. I think that Sears, who sold that boy his mothers gift, reports to the IRS. So what if Mr. Jones didn't want to pay the boy $5 and cut the lawn himself. Sears lost his sale and mom didn't get her gift, and the IRS is out it piece of action, not to mention the jobs generated at sears then the milk that the sears employee was able to purchase and so on.