I remember reading a few years ago that income from eBay and other online activities became taxable in the United States, then United Kingdom and recently, Canada, though I am not certain if the law was finally passed in Canada.
Beginning 2011, though, it will be compulsory for online payment processors like PayPal and Google Checkout to report these transactions to the IRS.
I wonder if this is even necessary since many people I know have diligently printed out their PayPal statements for tax declaration purposes. Now it looks like this isn't even enough? Why? Doesn’t the IRS trust these taxpayers? I think it’s pretty sad that the IRS needs to cross check them like this.
So far, it seems like there's lack of guidance on the part of IRS but this new law will apply to PayPal US customers who have achieved US$20,000 in gross transactions and more than 200 transactions in a year.
If you fall into this category, then you will have to keep your eyes and ears peeled.
Beginning 2011, though, it will be compulsory for online payment processors like PayPal and Google Checkout to report these transactions to the IRS.
I wonder if this is even necessary since many people I know have diligently printed out their PayPal statements for tax declaration purposes. Now it looks like this isn't even enough? Why? Doesn’t the IRS trust these taxpayers? I think it’s pretty sad that the IRS needs to cross check them like this.
So far, it seems like there's lack of guidance on the part of IRS but this new law will apply to PayPal US customers who have achieved US$20,000 in gross transactions and more than 200 transactions in a year.
If you fall into this category, then you will have to keep your eyes and ears peeled.
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