IRS goes after eBay, wants info on seller earnings
The government has recently been leaning on eBay to make sure that sellers are not dodging their own tax responsibilities, but eBay wants no part of the government's plan.
In short, the US government wants to treat eBay as a "broker" who would then be required to file notices with the government about how much money its traders have made. The US proposal calls for this reporting to take place only when people sell more than several thousand dollars worth of merchandise in a year.
With so many people making part or all of their living through eBay, the government wants its cut. This isn't an issue of any new taxes, but an attempt to collect the income tax that is already required. Because eBay does not report information about its sellers to the government, income reporting is left up to individuals, and the temptation not to list eBay revenue as income can be a strong one—and in some cases, it's not always clear when one has to do so.
The government believes that tougher enforcement of the rules could net as much as $2 billion a year, which isn't chump change, even to the Feds.
4 votes
