Taxing online sales

Nina 04-17-2007

As if there wasn't enough to complain about with the IRS, add this to the list. The US Treasury Department is making a charge at forcing Internet auction sites to turn over the identities and social insurance numbers of their users to the IRS so they can keep tabs on income made through these types of sales. Sometimes you read a story and you don't even know where to start directing your anger.

The first, and most obvious problem with these sites handing over the SSN of their users is that they don't have them. And why would they? The strange but loveable guy who runs the flea market parking lot doesn't take the SSN of the people setting up tables. If he did, far fewer people would sign up. Online auction sites are no different. It seems as though Internet auctions may be victims of their own success. It is reported that nearly 700,000 Americans make their primary or secondary income from online sales. This is income that could easily go unreported, prompting the Treasury Department to consider action. But at what cost? Sure, Amazon and EBay and the like will take a hit, but will continue to profit. But many of the lesser known sites may not have the physical or financial stability to stay afloat if they are required to obtain and report the identities of their users.

In the end, the small change in the tax gap certainly can't be worth cyber-ransacking these smaller companies and ruining people's lively-hoods. Unless of course it causes the all-too-fun term "cyber-ransacking" to catch on, in which case these small companies may be deemed as unfortunate but necessary losses.

Dream

OK now you fucking with me big time. The only person who proably shops online more then me is Sinny but can't really call it shopping when you getting tv's and stuff for free. Damn IRs sucks!