posted on March 17, 2007 01:14:44 PM
This may be old news. I know we have discussed this topic in length. But just in case someone missed it:
NEWS, NEWS, NEWS
EBAY REPORTING ONLINE SALES TO GOVERNMENT
In Australia this week, eBay told sellers they had given the Australian Tax Office information on sellers who sell over AU$50,000 (about $39,000 USD) in at least one year between July 2003 and June 2006. EBay told them name, ID, email address, home or business address, birth date, phone number and sales figures. Sellers in Australia who are paying the GST (10% on goods and services sold in Australia) welcome the news because it levels the field with those who don't pay taxes and are able to sell for lower prices.
A U.S. congressional committee is looking at unreported income, and online sales are a major concern. EBay sales in 2006 were over $25 billion and there is no way to know how many sellers pay taxes on their online earnings. Since most taxes are paid on income reported to the IRS, like the interest on a savings account or stock dividends or salaries, Congress wants to find a reporting system for online sales. Tax laws now apply to brokers, but eBay and auction sites are not, by current definition, "brokers." That may change and eBay and others may have to report sales information so the IRS can collect taxes. Think it may not?
posted on March 17, 2007 02:21:56 PM
I already pay taxes on my eBay sales, meager as they may be lately. I would resent, however, eBay reporting all of my sales and other private information to the government for a variety of reasons. What if eBay's figures and mine are not the same?
What about dead beat bidders? It isn't income if a "buyer" doesn't pay me. Also, when I file my tax return, I don't give the IRS my e-mail address, my user ID on eBay, or my phone number. If this comes to pass in the U.S., eBay's claim of being "only a venue" will be severly undermined.
To sum up, it's the responsibility of the seller to report his or her's income to the IRS.....it should NOT be eBay's.
posted on March 17, 2007 02:52:38 PM
25 billions is not small change,IRS will come up with a way ,say a reconcilation form for us to explain the discrepancy between what Ebay reports and what we claim to have sold.
This would be good news for HR Block as they charge by the form.
More forms,more revenue for HR Block.
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Lets all stop whining !
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[ edited by hwahwa on Mar 17, 2007 02:53 PM ]
posted on March 22, 2007 12:56:12 PM
I dont know how much HR Block charges ?Why dont you call them and find out?
BTW,I read an artcile the other day about getting Paypal to tell the govt how much we collected?
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Lets all stop whining !
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posted on March 24, 2007 07:55:34 AM
I love it!
I pay taxes on my eBay income --- so should everyone! It is the law.
Of course if I didn't I could sell for less .... that is what some do.
I pay Federal, State, and state sales tax.
It is much easier with the sales reports , they breakdown Sales, Paypal fees, and eBay fees.
That is 3/4 of the work readily on hand .
It has really simplified the bookwork.
We own a small business and are required to file 1099s on Contract Sales and Labor. This has been routine for years.
The banks file similar information.
This is no big deal for folks obeying the law.
It is a good thing since maybe my taxes will not be increased to make-up for those who make money and do not report it as income .
posted on March 24, 2007 08:08:51 AM
We shouldn't mind eBay reporting our information EXCEPT that eBay doesn't have the rigor around its numbers that an employer/bank would. I don't mind my employer reporting my wages, or a bank reporting my interest, because I have a strong sense that the numbers will be accurate, or readily fixed by them if they're not. I have no such faith in eBay.
OTOH, what eBay reports is only revenue, not profit, so there is probably room to fix whatever their misrepresentation is via expenses, basis, etc.
I agree, however, that people who are running businesses that can only exist on the basis of being untaxed should close up shop. It's not fair to run a business on the backs of those of us who pay our taxes.
Claude
PS I'm one of the handful of people who actually report my nanny's wages and pay up for that.
posted on March 24, 2007 08:26:38 AM
The government has had the power to see what you do in Ebay all along. When requests are made by the IRS, most businesses will comply. If not, The IRS could always go to a court and get an order for the information they want.
I am down to being a hobbyist on Ebay. I sell the stuff I get at the Olympics and usually make almost enough to pay for the trip. This year, I was able to report a small profit.
