[Snowman]

While this isn't a story specific to selling cards, I was audited by the IRS before and can share what that experience was like for me.

Back when I played poker professionally, I used to get all sorts of random 1099s of various types. I would back other pros as well, and taxes were always complicated as nobody has receipts for any of that stuff. Particularly the agreements between players where they "piece swap" percentages of each other in tournaments (it's common practice for pros to exchange say 5% or 10% of each other to decrease their variance, or to back other players' entire entry fees). I got audited one year by the IRS for my poker winnings, and I had a sizeable 1099 that I had to explain. The agent I dealt with just required me to get a notarized statement from the other player that said the proceeds were from gambling and that the winnings were split between us. It wasn't the nightmare everyone had warned me it would be, but it was a lot of work digging up documents. I'd prefer not to have to do it again though.

Also worth pointing out is that while they did lower the reporting threshold, assuming it stands, that doesn't mean they're coming for you over $600 worth of earnings. Audits are not random. They use machine learning algorithms to flag high-risk returns. Having a few hundred or even a few thousand or probably even ten thousand dollars worth of eBay sales is not going to flag an audit. And if you're doing 6-figures worth of eBay sales, you should be keeping some pretty damn good records already, and should probably have a business license.