The IRS May Ask eBay To Report Seller Activity

Makarand writes: The IRS thinks that many sellers on online auction sites are unaware of their obligation to declare their profits and pay their taxes to the IRS. Tax experts are now asking the IRS to require the online auction sites like eBay, Yahoo and Ubid to report the gross sales numbers for their sellers. Such a requirement will surely send a shock wave across the online trading world becuase it could drastically reduce the profits a seller will eventually make on these sites after paying the Tax Man. The IRS thinks it can collect an extra $2 billion in taxes from this requirement.