I would imagine most of the big players do file taxes, because it is a large quantity of cash they are making. While you are technically liable to file taxes on any income over $400 which mostly includes even account sellers, unless you are one of the big dealers/sellers and are moving a ton of stock daily then it's probably something the IRS is not going to send you 1099 or bust your chops for.
That said, it is still possible, just very unlikely. Another thing to account for is how much money paypal uses, as I believe they report accounts bringing in 20k a year or more ro the IRS, however it's not hard to come up with.. er.. creative ways around this
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In short, as a small seller/buyer I wouldn't sweat it too much, however if you're making your living off of it, you either need to get creative with how you manage it and where you channel it to, or you should probably just cover your asses and claim it as income on your tax return.
02-01-2013, 03:25 PM
Hybrid Mode
