Originally Posted by Hosta
has anyone gotten anything like this? The person said she worked for PayPal and the government is requiring Paypal to send out 1099
Yes, but only if certain conditions are met.
They don't care about you selling a $10 used crock pot and some used clothing on eBay.
The statements will only be sent to merchants/sellers if, in a given year, the total gross amount is over $20,000 and there are more than 200 transactions.
So even if you sell a car for over $20K, you don't get a statement.
And even if it is reported, the statement itself doesn't include any returns, COGS, shipping expense, eBay fees, etc. So it's not like all of sudden you've got to pay tax on an extra $20K of income. You'll deduct all those expenses, and others, when you do your taxes.