Dandy

Taxing online sales (Download Squad)

Apr 17th 2007 2:45AM Fleamarkets don't generally require an SSN, but most require you to have a state resale permit, if you live in a state with sales tax, and often a city business permit, though there are temporary ones that most people can get for occasional events.

It is actually pretty dumb not to report eBay income, because most people use Paypal or receive checks that must be deposited. Paypal keeps records back to the day you signed up-- just check your "History" to see. If they were ever to turn over those records to the IRS, you would no be able to hide that income. Not to mention that anything you withdraw to your bank account has a paper trail there too.

The only way you could avoid a paper trail is to accept only cash or cashable money orders, (like those from the Post Office). Of course then the Post Office will have your driver's license on the money order when you cash it there, and who knows where that info goes. Also your business would suffer since nobody wants to pay that way. Better just to pay your taxes, if they could get Capone, they could get you too.