The following email was received from Ralph and Terry Kovel.
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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?
