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News Link • TAXES: Federal

IRS to Track Online Sellers' Payment Transactions Beginning Next Year

IRS to Track Online Sellers' Payment Transactions Beginning Next Year By Barbara Weltman March 07, 2010 Reading AuctionBytes: IRS to Track Online Sellers' Payment Transactions Beginning Next Year Internet sellers who don't report their sales will no longer be under the radar. Starting next year, any bank or other payment settlement company that processes credit cards, debit cards, and electronic payments such as PayPal will have to issue information returns telling the IRS what merchants receive. The new returns are Form 1099-K, Merchant Card and Third-Party Payments. Purpose of Reporting The IRS believes that many online sellers fail to report their transactions. Some don't report because they mistakenly believe that Internet sales are invisible. Others do so because they are trying to evade taxes. The IRS has found that using information returns, such as W-2 forms for employees, Form 1099-MISC for independent contractors, and Form 1099-INT for b

5 Comments in Response to

Comment by Diana Jay
Entered on:

NEWSFLASH:  THE IRS is NOT a branch of the government.  It IS a private institution with very un-American interests.  Notify everyone and their brother to support Ron Paul.

Comment by Curtis Scott
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According to the TAX CODE, -filing a 1099 on a US Citizen is generally a MISUSE of the form.  The form 1099 -as defined by the code is to be filed on foreigners with US Source income.  IF auction centers like e-bay begin to file 1099's inmasse against US Citizens, -that FALSE TESTIMONY will create a DAMAGED CLASS.  Doing it through the mail may quite possibly violate RICO laws.  Is this the stupidity that ends eBay in a gigantic class-action lawsuit? We'll find out.


Comment by Get Real
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Around a year or so ago, ebay stopped allowing direct payment via money order, cash, cashier's check, personal check, or any other payment via snail mail.  Ebay requires all payments to go through PayPal so that payments can be tracked.

A significant number of Americans who have become unemployed are keeping the lights on via ebay.  It's good to see the government trying to squeeze every last drop of blood out of the public.

Ebay sellers will need to keep track of what they paid for the items they sell in order to calculate profits.  How many garage sale sellers have original receipts?

Comment by Found Zero
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IRS: Coming soon to a garage sale near you!

Comment by G Cone
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goodbye ebay, hello craigslist! Actually, I've never sold anything on either, but youknowumsayin' 

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