IRS and EBay Sales Tax

Associated Press ^ | March 28, 2005 | Mary Dalrymple

[Muleteam1]

IRS Instructions Make It Clear That That Income From Sources Like EBay Sales Can Be Taxed

WASHINGTON (AP) -- Hawking baby and children's clothes -- along with some garage sale and thrift store bargains -- on eBay helps Sunni Wojnarowsky bring in some extra money so she can afford to stay home with her two young boys. The additional dollars are great, but does she really need to hassle with the paperwork and report her small profit to the Internal Revenue Service? Her question, posed to the online auction site's discussion board for sellers, generated much advice -- and more confusion.

In tax law, there is no clear, bright line that separates fun from profit, or a hobby from a business. But IRS instructions make it clear that all income -- a category that includes bribes, gambling winnings, kickbacks and money made in illegal activities -- can be taxed.

See complete article here.

[Muleteam1]

I find it interesting that this is even a story since the IRS considers any income as taxable.

[MamaTexan]

a category that includes bribes, gambling winnings, kickbacks and money made in illegal activities -- can be taxed.

The I*R*S can kiss my A*S*S!

[dread78645]

Dupe

[Muleteam1]

They actually seem to think someone would report income derived from selling stolen cars or drugs?

[Muleteam1]

I did a search and did not come up with this story. Sorry.

[MamaTexan]

They actually seem to think someone would report income derived from selling stolen cars or drugs?

Laughable, isn't it?

[blanknoone]

The original title used 'income' tax not 'sales' tax. There is a very large difference.

[Muleteam1]

Yes indeed. I was thinking about internet sales tax when I posted.

BTW, mine is a duplicate of the same news that is well into a good discussion already. I would encourage reraders here to read the message above this one for the link to the first post on this issue.

Muleteam1