Income tax is required to be paid on ANY form of income. That's how the
Fed's got Al Capone. He wasn't arrested for his criminal activities. He
was arrested for Income Tax Evasion.

Anytime you sell something you own for more than you paid for it, you have
income to pay taxes on. Direct Selling companies provide 1099's to
independent sellers of their products. While they don't list the amount of
money involved, there is a box on for Form 1099 that is checked. The
checked box indicates that the named person purchased at least $5,000 worth
of products for resale. About the best that the IRS could force eBay to do
would be to provide a similar statement that the named person sold at least
$5,000 worth of products on eBay.

It would then be up to the taxpayer to report his net profit on the required
tax form (Schedule C of Form 1040 if a sole-proprietorship. Form 1065 if a
partnership, Form 1120-S if an S-Corporation, etc). It would then be up to
the IRS to dispute the amount reported via a tax audit.

For the casual seller of coins on eBay, it's his or her decision to report
any income. Just like the voluntary reporting of items purchased out of
state where no sales tax was paid and the state tax form has a line for the
taxpayer to report and pay the required sales tax to his home state. Or as
another has pointed out, the cash back on cans and bottles.

Even gambling winnings have to be reported as income. Casino's have a level
at which they have to immediately report some winnings and withhold a
percentage of the amount won and forward it to the IRS. The Casino then
gives the player a 1099 which reports the amount of the winnings and the tax
withheld. Gambling losses can be deducted from gambling winnings up to the
amount won. You just need records to show how much you lost.

I own a tax preparation and bookkeeping business. I even worked for the IRS
during one tax season. It was interesting to say the least.

Bob

"Arizona Coin Collector" wrote in message
...
Hello

Last night I completed my 2007 Federal and State Income
Tax. I used TurboTax software and E-FILED both my
State and Federal Income tax.

Investment Sales are taxable. Stock, Bond, Mutual Funs
Antiques, Coins, Stamps, Art ect.

THE IRS REMARKS ON COIN COLLECTING
http://www.irs.gov/newsroom/article/...172833,00.html

If you go to the IRS Web page, and use the search
word "Coin" your get some interesting results back.

That realy sucks........

I can see the IRS requiring EBAY to send some form
(lets call it a 1099-cc, "coin collecting"), to anyone
who sells a coin to anyone.

Death and Taxes will always be around.

.