Facing a $345 billion tax gap, the Internal Revenue Service has set its sights on a new target - the rapidly expanding world of online business.
In an effort to crack down on under-reporting by individuals and businesses that sell goods online, an IRS official said the tax agency is discussing creating new tax reporting requirements.
While no details were given, the new reporting requirements could mean big changes for stand-alone Web retailers as well as individuals selling family heirlooms through popular online auction sites such as eBay Inc.
Under current tax law, an individual who sells an item online and collects more money than its purchased value is expected to report that money as income on their tax return. If an item’s original purchase value cannot be determined it is typically valued at $0 under current tax law.
Perry Whitford on August 28th, 2006 at 10:24 pm
This change is truly needed to charge people who earn good money from internet but what about many who only earn $10 - $ 1000? For example, affiliate marketer who spend $500 to earn $200. This is not gona be simple anyway.