If I sell/make money on ebay, is there any way for me to get in trouble for not reporting it to the government? How much trouble could I get into if they found out?
by 
fabuliz
ANSWERS: 4
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Jail good enough for you?
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Here's an idea. Why don't you just follow the law and you won't get into any trouble at all? Also, you can be sent to prison for many things and not just tax fraud. I included some articles that you had better take a look at: an ebay cheater gets 4 years: http://www.crime-research.org/news/13.10.2004/710/ http://ato.gov.au/corporate/content.asp?doc=/content/76616.htm http://www.ftb.ca.gov/aboutFTB/press/2006/06_08.html http://www.slate.com/id/2139692/ Take a look at this site if you are having trouble taxing your ebay profits: http://www.tax-preparation-helps.com/Articles/Taxing_Your_eBay_Profits.php
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The government, namely the internal revenue service, monitors many websites. this is mainly for homeland security purposes. seeing an individual email address constantly being paid money, might draw their attention. i would keep facts and figures for monies i was paid on any website. if you are not reporting this, it is income tax fraud and they will send you to prison. Pay the taxes as you go. then, you will not have to worry, if that next knock on your door, is the internal revenue service. every transaction you make on a website is recorded by somebody, somewhere.
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If you are reselling things and making a profit, then you are supposed to pay taxes on your profits. However, if you are selling things for less than you originally paid for them (like old stuff that you bought at a higher cost that you are just trying to get rid of like a garage sale) then you are not making a profit and do not need to pay taxes. If you have enought stuff that you have an eBay store - then the IRS might notice you, but if you just sell something now and then, then you probably have nothing to worry about.
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