Cookie banner

This site uses cookies. Select "Block all non-essential cookies" to only allow cookies necessary to display content and enable core site features. Select "Accept all cookies" to also personalize your experience on the site with ads and partner content tailored to your interests, and to allow us to measure the effectiveness of our service.

To learn more, review our Cookie Policy, Privacy Notice and Terms of Use.

clock menu more-arrow no yes mobile

Filed under:


Racked is no longer publishing. Thank you to everyone who read our work over the years. The archives will remain available here; for new stories, head over to, where our staff is covering consumer culture for The Goods by Vox. You can also see what we’re up to by signing up here.

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]