Unfortunatly it IS an either or situation.
They figure if you have received $20,000 in funds OR have received atleast 200 transactions, then it IS a source of income and MUST be reported to the IRS.
I am in the boat of running a personal home business. It will probally be a long... long... time before I make it to $20,000! but!!! 200 is right around the corner and then it will be required.