Should I report my income on eBay sale to IRS?

[rayxiaoyu]

Should I report my income on eBay sale to IRS?
Will PayPal report my income to IRS?
Anyone knows about that?

[jeffweico]

In 2011, if you have more than $20,000 in sales, PayPal (or any other payment processor) is required to report that to the IRS.

And YES, OF COURSE you should pay taxes on any profits on your eBay sales. To not do so is called TAX EVASION.

[oompaloompa]

well thats the simple version, break up your selling from that one high earning account in to two or more differently detailed and non-linked accounts, and thats called TAX AVOIDANCE hee hee...

[jeffweico]

OompaLoompa brings up an interesting point.

If using stealth accounts to sell, and the IRS ever nails you for not paying taxes, would the IRS then use that information to file criminal charges? To them, it would probably look like the stealth accounts were set up to evade taxes, not just to get back on eBay or Amazon.

Something to think about.

[oompaloompa]

off course that is true, once the IRS has looked at you as a target they can get anything easily...in my anecdotal experience though, IRS or Inland revenue in UK do not take an interest in you per se, unless something leads them to you...a report from someone in the real-world is usual suspect.....

[gibsonton]

your going to need diff ss#'s for different paypal accounts from converation with paypal or if you use the same # it will reported as one sum..

[jeffweico]

FEIN's should work as well, at least for business accounts

[rayxiaoyu]

But I don't sell on US. I sell to Europe. And also I don't purchase inventory from US. I just use US paypal to receive money. I still need to pay tax to IRS?

[oompaloompa]

well if you live in US, then usually you are tax liable on earnings, although few residency exceptions..

[IDK]

One word. NO!

Originally Posted by jeffweico

In 2011, if you have more than $20,000 in sales, PayPal (or any other payment processor) is required to report that to the IRS.

And YES, OF COURSE you should pay taxes on any profits on your eBay sales. To not do so is called TAX EVASION.

Is it $20,000 in sales in a month that is required to report?

[GreenBean]

Go see an tax accountant to work out what to do. Forum is not a tax specialist.