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Online Sellers Face New IRS Rules (Attn Paypal users)
The Wall Street Journal (excerpt, subscription) ^ | July 30, 2008 | Martin Vaughn

Posted on 07/29/2008 6:47:22 PM PDT by HAL9000

Excerpt -

If you regularly sell items on online auction sites, you may find yourself on the Internal Revenue Service's radar. Recent legislation aims to help the IRS collect more taxes from online enterprises, many of which either don't know about their tax obligations or are ignoring them, according to the agency.

The provision, part of the housing rescue package that President George W. Bush is expected to sign within days, will require PayPal and other processors of online payments to report annual gross receipts to the IRS for all but the smallest online merchants.

~ snip ~


(Excerpt) Read more at online.wsj.com ...


TOPICS: Government; News/Current Events
KEYWORDS: bigbrother; ebay; irs; paypal; privacy; taxes
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To: alicewonders
"I know several people that have had their Paypal funds frozen because of a complaint from a buyer. They didn’t even try to get the seller’s side of the story first."

I've just gone through Paypal's so-called dispute resolution process. I told the Paypal agent that they had no business calling it dispute resolution. My experience was that they were uninterested in facts, and automatically found for the buyer. Paypal has leverage over sellers, and uses it to take care of buyers. They also gave incorrect and inflammatory information to the buyer, intensifying the dispute. It was a very frustrating experience.

I haven't given up on selling used goods from our home. I've learned, however, that I will need to require shipping insurance on every package unless I'm willing to risk being held responsible for any damage or loss on the part of the shipper. Paypal pushes this onto the seller, regardless of facts.

I'd love to see someone set up a "not-eBay" and "not-Paypal", taking them back to the more balanced policies and more reasonable fees of a couple of years ago.

21 posted on 07/29/2008 8:04:20 PM PDT by Think free or die
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To: HAL9000

But then they’ll pass a Tax Rebate bill and give a lot of it back after they realize they’ve taken too much, right?


22 posted on 07/29/2008 8:10:55 PM PDT by neefer (Big city turn me loose and set me free.)
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To: Think free or die

Yep. And now ebay has made a new rule that buyers can leave negative feedback to a seller - BUT - a seller can’t leave negative feedback to a buyer. It’s too bad, I am an antique dealer & have lots of stuff to sell, but I won’t do it on ebay anymore. I can get higher prices selling it out of my shop anyway than I can on ebay anymore - AND - not have to bother with packing & shipping it.

You’re right, I wish someone would knock ebay off of their pedestal.


23 posted on 07/29/2008 8:15:58 PM PDT by alicewonders (I'm a conservative, and I'm hated by the GOP & the Dems - I must be doing something right!)
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To: politicket
I need to issue a mea culpa. I finally DID find the provision in the housing bill.

And a slap on the hand for you from a very stern Nun.

24 posted on 07/29/2008 8:18:55 PM PDT by steve86 (Acerbic by nature, not nurture™)
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To: alicewonders

Yup. The two-way feedback kept some excesses in check. Most buyers have been reasonable people in my experience, but there are occasional goofballs, deadbeats and outright cheats. I’d like to be able to warn other sellers, but have no way to do so.


25 posted on 07/29/2008 8:20:06 PM PDT by Think free or die
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To: politicket

So 200 transactions and $20,000 aggregate revenue seems to be the “opt in” rule.


26 posted on 07/29/2008 8:21:55 PM PDT by steve86 (Acerbic by nature, not nurture™)
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To: Jeff Chandler

Ya just gotta switch from that fancy intarweb thing to old fashioned flea markets. I’ve got a new truck for things to fall off the back of.


27 posted on 07/29/2008 8:27:49 PM PDT by MediaMole
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To: HAL9000

btt


28 posted on 07/29/2008 8:30:58 PM PDT by Cacique (quos Deus vult perdere, prius dementat ( Islamia Delenda Est ))
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To: steve86

The article has it wrong then...

From the article... less than 200 transactions and less than $10,000.00


29 posted on 07/29/2008 8:48:18 PM PDT by stlnative (There is no room for B.O. in our White House !)
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To: Jeff Chandler

No paypal, just money orders from now on.


30 posted on 07/29/2008 8:52:34 PM PDT by o_zarkman44
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To: steve86
And a slap on the hand for you from a very stern Nun.

LOL!! Ouch!!!
31 posted on 07/29/2008 9:20:32 PM PDT by politicket (If it defaults, call Rit something else and sell more of it.)
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To: steve86
So 200 transactions and $20,000 aggregate revenue seems to be the “opt in” rule. Yes, but it is still good to get all of your E-Bay'ing done as soon as possible. Don't wait for 2011.

Barter web sites might become the new way of doing business.
32 posted on 07/29/2008 9:24:51 PM PDT by politicket (If it defaults, call Rit something else and sell more of it.)
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To: o_zarkman44

As I understand it, PayPal is mandatory now. It must be presented as an option.


33 posted on 07/29/2008 9:33:56 PM PDT by SatinDoll (Desperately desiring a conservative government.)
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To: HAL9000

“What other surprises are hidden in that legislation?”

Plenty, I’m sure.


34 posted on 07/30/2008 5:08:41 AM PDT by gracesdad
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To: HAL9000

Congress going after grandma selling “Kute Kitty” dishtowels. The rat congress wants to wring every dime out of every citizen to pay off the fat welfare mommas and their drunk boyfriends. It takes great effort, after all, to drag your enormous butt off the couch, leave your beer to get warm on the coffee table, set the machine to record the soap operas and waddle down to the precinct to vote two or three times. Some extra payment needs to be made.

Kids with pennies in their piggy banks are next, unless they’re collecting SS disability.

Tory scum and their supporters.


35 posted on 07/30/2008 5:26:29 AM PDT by sergeantdave (We are entering the Age of the Idiot)
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To: HAL9000

Obviously drilling our wallets is a far easier job for the feds to get done.....


36 posted on 07/30/2008 5:31:38 AM PDT by mo
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To: SatinDoll

Don’t think so. I have sold many times on ebay and bought items as well. Paypal is not mandatory, although as a buyer it is convenient. As a seller the 4% commission is the same as a credit card merchants fee.

I still have the option to not accept Paypal if I so desire.


37 posted on 07/30/2008 9:01:20 AM PDT by o_zarkman44
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To: Think free or die

Just pass on the cost of the insurance. If the buyer don’t like it, tell them not to bid. problem solved.

I always make insurance optional. That way the buyer can’t complain if there is a problem. I have had only one item that came out of a box during shipping. The buyer complained but since the value was less than $20, nothing happened and no further problems arose.

If I ship an item insured, my return policy is that it be returned insured as well. Not had any problems with that policy either.


38 posted on 07/30/2008 9:09:12 AM PDT by o_zarkman44
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To: Crimson Elephant

Well, if they’re actually turning a profit. Some people, myself included, just sell stuff they already owned when they want to get rid of it, so this would mean lots of paperwork just to justify not paying taxes that aren’t owed in the first place.


39 posted on 07/30/2008 9:10:40 AM PDT by Still Thinking (Quis custodiet ipsos custodes?)
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To: SatinDoll
As I understand it, PayPal is mandatory now. It must be presented as an option.

That's correct. Obviously you can tell them in the body of the auction you don't accept Paypal and they will need to send you a check or money order.

40 posted on 07/30/2008 9:12:28 AM PDT by Still Thinking (Quis custodiet ipsos custodes?)
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