eBay and the IRS

Content Originally Posted by Sports Collectors Daily on March 19th, 2009.

Some do it to pad their income.  Others have to sell to make ends meet.  Many sell on eBay to support their own collection. 

No matter what the motivation, one thing is clear.  The Internal Revenue Service is starting to take a longer look at the millions of dollars that's changing hands on eBay.

Many small-time sellers actually take in a sizable amount of cash each year.  A large number of those don't keep records of the sales and thus don't report it on their income tax.  It's been a relatively safe proposition, unless you were making tens of thousands of dollars.  Now, though, the IRS is starting to keep closer tabs on who might be getting away with hiding significant amounts of income when it comes time to file a return.

"Some individuals have the perception that sales made over the Internet are not subject to income taxation. This is not true," says Greg Semanick, a media representative for the IRS in New Jersey and Delaware.

It's something to keep in mind if business is good, according this story on Forbes.com.