Selling on eBay? The IRS May Be Watching

The Internal Revenue Service believes there’s a huge gap between the amount of taxes it collects and what it should be taking in.  They’re now taking steps to change that.

One area of strong interest is the huge number of people who are now picking up extra income by selling on eBay.  For most, it’s just the means to support a hobby.  Others, though, have learned how to make it a very profitable second income–or even turned it into a full-time income.  So how many of those people are are reporting all of that cash?

Not enough according to the IRS.

The agency says starting next year it will be sending out 1099 forms to anyone who meets a certain threshold–and those who don’t should be ready to report any gains from cards or other memorabilia they sold at a profit.

The Washington Post sorts out the details.