Argh! Here goes again. The IRS is now leaning heavily on eBay wanting them to cough up information on seller’s that are making any decent income through eBay auctioning. What is amazing is that the IRS expects to collect an additional $2 Billion in taxes from people currently NOT reporting this as actual income each year. I don’t think so!
Here is an exerpt from an article out of Financial Times:
People’s caution in coming forward has prompted the Bush administration to propose compelling eBay and auction businesses such as Sotheby’s to report to the IRS any customer that carries out more than 100 transactions a year worth at least $5,000 (€3,850, £2,565).
The Treasury expects to collect $2bn in extra taxes from the new regime, due to come into force on January 1 2008.
But eBay is fiercely resisting the proposal and has mobilised its extensive lobbying operation on Capitol Hill to question the legality of the proposed changes.
Representative Rick Boucher, who has received campaign donations from eBay, said he had been contacted by the company and shares its view that the Treasury and IRS would be stretching the limits of their authority by extending rules that cover “brokers” to the website.
It’s about time for a National Sales tax and the IRS to be abolished.
I second this!
I think the president needs to log on to ebay and try to sell something. I have had many completed auctions sell and I never got paid. Are they going to report earnings I never made? How are the going to calculate my profit margin, how can they verify how much I paid for my item I could sell something for $100.00 but paid $99.00 bucks for it are they going to report the $100.00 to the IRS. This is impossible to track only George Bush can come up with something like this?
*LOL* while i don’t wish it to be abolished as i like driving on roads and visiting parks due to our tax dollars. I do wish there were better ways.
Heck, if I hid my eBay income I would actually end up paying MORE taxes.
How is this request any different than banks, large retail sellers or online advertisers having to notify IRS of payments over 600.00?
I pay my share of taxes on my income. Its only fair that folks that are hiding their online income via auction sites to pay their share too.
What is so frustrating is that those who do not pay are the ones that holler the loudest when it comes to lowering unearned income benefits and special gov programs and holler they didn’t get their rebate tax check….*what tax rebate? You cant get a rebate if you do not pay….*
I think this has to do with where the actual $ are coming from? I thought I heard something about Paypal and the IRS, which makes more sense.
With eBay specifically it would be the equivalent of you having a Buy/Sell section on your forum, and having to report transactions members make between themselves to the IRS.
Seems fair that the taxes get paid, it will be a big burden on eBay if they are held responsible for reporting rather than the actual merchants.
I believe the IRS has been after eBay for a while. It’s a tricky situation since eBay is not the actual merchant; they are the marketplace. But with so many people not reporting income from there, I can see why it drives the IRS just a little nuts.
I definitely think its silly that eBay has to do anything with it.
What’s next, is the IRS going to call up Sitepoint and tell them that they need to track each website sale?
What happens for eBay sales that dont’ go through and stuff….eBay doesn’t necessary track that…
The whole tax thing is way out of control. I recently recieved a a tax debt from 2002 for some affiliate program that I don’t remember and to my knowledge is out of business. (I know I can’t be the only one)
But the entire thing is just a big game that we are forced to play.
Thanks for the infomation, Lee. I’ve bookmarked your above article at itribe.biz/news to share your details with others interested in the same topic. If you know of other great articles on this topic, send me an email. I’d enjoy reading them for addition to the collection.
The American revolutionaries revolted over a lot less than what the FedGov takes out of our paychecks. I recently wrote an article on my blog about how most Americans (not just the average American) end up paying 40% of their income in taxes every year.
No surprise here on this. The IRS will start cracking down on a lot of web businesses and marketplaces. Watch them start taxing the crap out of Second Life and WoW.
I knew that this would happen
There is no way that sellers in eBay will agree for IRS intent.
CPA Affiliates … Don’t laugh too loud. Not a
penny from fed income tax goes for roads. You bought the road when you filled up.
You get NOTHING for your fed taxes. 100% of the money goes toward $250,000,000 a DAY in interest on the national debt and deceptive money pits.
You pay a separate 15% tax for SS and Medicare. Corporate (legal) taxes pay the defense budget with many billions left over.
Did you know:
There was a full page ad in USA Today offering $75,000 to ANYONE who could show a law giving the irs/gov the right to tax wages. No one has found one.
The IRS claims the 16th Amendment. Exhaustive research can only find 4 states that voted for it … needed for ratification - 36.
Subsequently, the Supreme Court has ruled that your wages and time are personal property and CANNOT be taxed even if the 16th Amendment was ratified.
Filing a tax form and being held criminally liable for the information is a violation of your 5th Amendment Rights.
This is Fascism folks … in the midst of a brainwashed and “unknowing people.”
Educate yourself:
http://video.google.com/videosearch?q=freedom+to+fascism