IRS zooms in on Ebay users
p2pnet.net news:- As April 15 approaches, the US Internal Revenue Service, “reminds taxpayers to steer clear of abusive tax-avoidance schemes that purportedly allow them to reduce or eliminate taxes based on false or frivolous arguments. If an idea to save on taxes seems too good to be true, it probably is.”
So says an IRS promo or, as Ars Technica re-states it, the IRS wants its money and, “That’s why it has helpfully assembled a list of the most common excuses people use (PDF) for not paying their taxes. In case you weren’t aware of it, a claim that ‘the 16th Amendment is invalid because it contradicts the original Constitution, was not properly ratified, and lacks an enabling clause’ won’t fly with the government.
“In the same spirit, the government has recently been leaning on eBay to make sure that sellers are not dodging their own tax responsibilities, but eBay wants no part of the government’s plan.”
Says the Financial Times, “People’s caution in coming forward has prompted the Bush administration to propose compelling eBay and auction businesses such as Sotheby’s to report to the IRS any customer that carries out more than 100 transactions a year worth at least $5,000 (€3,850, £2,565).
“The Treasury expects to collect $2bn in extra taxes from the new regime, due to come into force on January 1 2008. But eBay is fiercely resisting the proposal and has mobilised its extensive lobbying operation on Capitol Hill to question the legality of the proposed changes.”
ebay already tracks the volume and value of transactions, notifying users when they reach key milestones and, “soliciting them with customised services,” says the FT, going on:
“The Treasury proposal would open the way for the financially stretched IRS to piggyback on the company’s systems by requiring eBay to report to authorities when customers hit milestones.
“The company says it will cooperate with the IRS in investigating named individuals and entities, but does not want to act as a ‘go between’ for customers ‘en masse’.”
Also See:
Ars Technica – IRS goes after eBay, wants info on seller earnings, February 25, 2007
Financial Times – Treasury aims to collect $2bn in extra taxes, February 19, 2007
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Tired of being treated like a criminal? They depend on you, not the other way around. Don’t buy their ‘product’. Do bug your local politicians. Use emails, snail-mail, phone calls, faxes, IM, stop them in the street, blog. And if you’re into organizing, organize petitions, organize demonstrations and then turn up on your local political rep’s doorstep, making sure you’ve contacted your local tv/radio station/newspaper in advance. Don’t just complain. Do something!
February 26th, 2007 at 8:54 am
The 16th Amendment WAS NOT properly ratified. However, this fact does not stop the IRS or courts from stealing assets of tax avoiders. As in many other cases, this is just another in which the government and its courts pick and choose which parts of the Constitution it will abide by.
If a robber or a gang member with a gun comes to your home or business demanding money, do you give up money or do you argue about your rights? Most prudent people choose to save their skins and give up the money, especially when they are out gunned and outnumbered. This is the same thing with the IRS. They have the police force of the entire nation there to enforce their policies no matter how unconstitutional these policies are. Yes, people who claim that the 16 Amendment was not properly ratified are right, however, I would not recommending an average person enforcing their RIGHT not to pay income taxes.
The proper and constitutional way to levy taxes for operation of the Federal government is to lay the taxes on the states in direct proportion to their representation in Congress. Unfortunately, the U.S. government chooses to forsake the Constitution and give preference to foreign entities at the expense of Americans. If someone wants to call me a kook for pointing all of this out, then so be it. After the name calling, I suggest people read the Constitution themselves. They will see how far the U.S. government (and state as well as local governments) has strayed from what the Founding Fathers intended.
February 26th, 2007 at 9:50 am
Many ebay sellers owe no taxes anyway. Gross income is not taxed, only profits. Even IRS admits sales of personal household goods are not taxable since these items were purchased with previously taxed money and would be losses anyway. Sales of collectable items such as coins, stamps and old beer cans are taxed as CAPITAL GAINS since they are investments just like stocks. An individual could easily gross more than 5000 dollars on ebay if they sold a car or boat. The state might want a payment, usually from the buyer, but the seller would owe taxes only if they somehow made a profit on the used car, not a common thing.
IRS would probably not want sellers all suddenly claiming to be investors or even businesses since most would show losses and use them to protect part of their income from salaries thus paying less tax than before.
Some ebay junkies fiercely insist that every last dime a person gets is taxable as ordinary income and expenses be hanged. If they want to pay more than their fair share its fine with me. But if IRS tries to collect ebay taxes they are only going to benifit accountants and lawyers.