Paying taxes? IRS requires you to pay taxes on ANY income that you have. This includes money from garage sales, craft shows. Ebay, ETsy, Craigs list, shoveling snow and anyone who is self- emloyed. Do all people do it? There was just a post discussing writing off expenses for business ( but that post disappeared). Check with you local tax preparer for all the rules and regs concerning this . I think that Etsy does not sends out end of the year sales statements but by posting stuff publically there is a record of your sales. Just be aware!