Ben Franklin was pretty much right on the money when he said that this country is nothing but death and taxes. Tax experts are pushing the IRS to force online auction sites like eBay and Amazon to track users’ sales and report them to the government. However, should the IRS tax sellers on their auctions, I suspect eBay would see a significant drop in overall auctions from smaller users who aren’t making their living off the auction site.
Think about it. Would you sell your $9000 Rolex on eBay if you knew you’d have to pay both federal taxes and eBay fees? Didn’t think so. You’d take that watch to a pawn shop rather than let the government screw you over again. eBay has gone on the defensive saying that they aren’t considered a broker and won’t adhere to taxation rules should they come into play.
Those of you who make a living off eBay might want to take some time to decide whether it’s worth staying in the game or not, should anything happen.
IRS urged to go after eBay sellers [SF Gate]