Another story about ordering stuff online. You can tell the US Treasury might be starting to feel the sting of a slowing economy….
There is simply too much money involved for tax free online sales to continue:
“The IRS is watching power sellers to identify any underreporting or non-reporting of income,” Carl said. “The IRS makes recommendations to help identify online sellers, but unless they are enacted (by Congress), there is nothing we can do.
Here is how you might be affected:
- Casual sellers need only report any profit they make but cannot deduct expenses.
- Use Schedule C.• Hobbyists are those who do more than a few sales but whose motive is not solely for profit.
- Use Schedule D.• Sales tax is collectible only if you have a sales-tax license. Otherwise, buyers are responsible for paying it to the state and/or city.•
- Keep receipts for everything — from what you bought to what you sell — just in case.