Taxes On Account With EIN
I've read a bunch of threads on the subject regarding EIN's and tax information, and thanks to this forum, I have learned a lot.
So, with that being said, I still have a question that's unanswered because I did not find a clear solution.
Let me paint the picture: - Account got request to add EIN/Tax info
- I added the EIN
- Paid taxes on money made that year. Sales were no more than $8k.
- Did not sell on this account for 2 years. Zero dollars went through the account in 2 years
- Came back to the account near the end of 2016
- Did $2k in sales
Here's where I'm confused: All the profits made from sales were spent on the Paypal account purchasing stuff. And some of the goods sold on eBay were at a loss so not a lot of it was profit so to speak. So not much, if any, was transferred to the bank. Anyway, does Paypal 100% report all funds that went through the account to the IRS because I have an EIN? Or is it only when you reach over $20k in sales and 200 items sold? Because I'm not even close to that.
What I mean is, can I take it easy and just file it as added income and not worry about all the fine details that an EIN entails? I simply want to add the money made from the sales as additional income.
Again, I've read multiple threads on this subject and understand that aspkin doesn't contain tax professionals, I should seek an accountant, always pay your taxes, etc. which I do.
I'm just looking to an answer to the question that I bolded above. Because as well know, Paypal for sure reports to the IRS everything when you do over $20k in sales and 200 items sold. But in my case, I didn't ever come close to that, although I do have an EIN attached.
Thank you. |