Taxing

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Are you a big buyer and seller on eBay? The IRS wants to know—because Uncle Sam wants a cut. According to a report in the Washington Post, sellers on the online marketplace who move more than $20,000 worth of goods in more than 200 transactions per year will be required to submit a 1099-K, beginning at the end of the 2011 fiscal year, and pay a cut of your earnings to the IRS. They're not joking, either: "Andrea Fabiana Orellana learned that lesson the hard way. The Internal Revenue Service claimed Orellana hadn't reported more than $41,000 of income from about 1,800 eBay sales of designer clothes, shoes and other items during 2004 and 2005 and said she owed nearly $15,000 in taxes and penalties. Orellana appealed to the U.S. Tax Court and lost." [WaPo via Consumerist]