Quote:
Originally Posted by BobC
Fred,
At this point, and hopefully never, would a site like Net54 be required to force users to do 1099 reporting or start forced backup withholding on sales. The backup withholding is totally linked and arising from non-compliance with the 1099 reporting rules and requirements. And as long as Leon and the site don't make anything off B/S/T sales and transactions, I don't see the IRS being able to come in and dictate anything to them regarding reporting. At least not that I am aware of under current federal tax rules and laws. Of course, my usual caveat, that can always change in the future, and lord knows what some particular state/city might try and throw into the tax mix as well. Always smart to check with your local, qualified and licensed tax professional/advisor then.
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I was being facetious with regard to N54 BST and any tax implications. However, if we all want to be good citizens and pay our taxes on what used to be a hobby transaction, then we conform.
It's understood what paypal appears to be doing at this time. It seems like they're trying to be compliant with new government regulations and prepping people for what's coming.
I rarely sell things so this doesn't impact me, but at least I'll be aware of this if I ever do decide to start selling via ebay.
What happens with AHs? If you consign something and the AH cuts you a check for $40K, does that get reported? Or has that been a standard practice for a while?