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DaveWI'll add my comments, but notice that I'm an engineer, not an accountant.
On any tax return, the IRS will check your math and to some degree cross match W4's and 1099 forms to see that you included all your income sources. Only later will they consider an audit.
In the case of cards, Matt gave a wonderful summary of the tax laws in the N54 link. These cards are collectables, so you only drop to 28% rather than 15% for long term.
You get to choose what category you fall into: business, investor, owner. (I'm paraphrasing from memory, please read Matt's post.) If you aren't a card shop or internet card dealer, you can eliminate the first. The choice between the second and third comes into play if you want to combine losses and gains to get your total income, in which case you want to be an investor.
In the case of an IRS audit, and they think you've been too liberal in your deductions, you can either further dispute the ruling, or pay what they say you owe. This will be the taxes you would have paid originally plus a minor penalty. But, they won't think jail unless they can prove that you were truly fraudulent in filing your return. An interpretation error won't get you to jail. And this topic is subject to major differences in interpretation.
I'd always claim these cards as an investment, so losses would be allowed, and I would deduct the ebay fees from any transaction. Those are legal expenses associated with your investments, and can be deducted from gains.
The fact that you're reporting the sales and paying is a big plus, let the IRS take action beyond that. The chance of an audit is low, and the outcome can be one of two things: Either nothing, or they find you've been to aggressive, and you have to pay what you would have originally, plus a small penalty. I think the penalty is something like 10 - 15 % of the amount due. That is small to me compared to the low probability of an audit.