Online Sellers Face New IRS Rules (Attn Paypal users)

The Wall Street Journal (excerpt, subscription) ^ | July 30, 2008 | Martin Vaughn

[Still Thinking]

Barter web sites might become the new way of doing business.

In theory barter is also subject to income tax.

[Fresh Wind]

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

As I understand it, you no longer have that option if you list in certain categories. Eventually, it will not be an option in ANY category.

[Fresh Wind]

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.

And, of course, the first time you do that, someone will insist on using PayPal. And eBay will back them up.

[politicket]

In theory barter is also subject to income tax.

That's very true. I'm just thinking that the barter web site would just charge a "membership" fee, thereby keeping if free from tracking and/or reporting the financial aspects of any "transactions".

[Still Thinking]

Well, it’s what I do and it certainly won’t happen “the first time”. I’m sure there are customers who will do that and you’ll have to put up with it but at least 90% will abide by your wishes if you tell them up front, thus cutting your Paypal exposure by the same amount.