Do you pay tax on your eBay earnings?
- Thread starter Az311
- Start date
No I don't mind paying tax, but just don't know how to go about since stealth eBay/Paypal accounts dont contain your correct details.
Since it is a stealth account then you do not owe any taxes...John Doe does or whoever you have on the stealth account.
I wish that was the case, but unfortunately I dont think its that simple, and it probably depends which country you're from. If your paypal is linked with your real bank details, than I would assume that the ATO (Australian Tax Office) would have a transparent view of your accounts including paypal account. Failure to declare your earnings would see ATO on your back. I don't think it would be too hard for them to trace anyone.
Very very few eBay sellers reach the $20,000 a year in sales.
Because I send all of my money to a Chinese bank account, I tell eBay I am not American thus I don't give them my SSN and that I use the American address of my fulfillment center which is someone else's business. Works for me.
Also, people believe it is $20,000 a year, but many people get mc999'd at anywhere between $12,000 and $15,000 very regularly in which they have to present documents.
Because I send all of my money to a Chinese bank account, I tell eBay I am not American thus I don't give them my SSN and that I use the American address of my fulfillment center which is someone else's business. Works for me.
Also, people believe it is $20,000 a year, but many people get mc999'd at anywhere between $12,000 and $15,000 very regularly in which they have to present documents.
GreenGoblin
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- Jul 17, 2008
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I pay taxes on whoever reports it to the IRS
unclemike
BANNED
- Nov 6, 2012
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Nice point...I mean unless their is some issue coming up I do not worry about. With a diverse portfolio of accounts
and companies (Including Non-profit) it is not to difficult to keep the money you earn.
Murdoch1337
Regular Member
- Feb 18, 2012
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If you're making it on stealth accounts, then I would say no. However, if you're bringing that money into your country, then technically you're supposed to pay taxes on it when you do that. If you are selling huge volumes, and end up having massive payments coming into your personal account from all of your separate stealth accounts, the tax authorities are going to be a little suspicious when they see $250,000 in incoming payments yet you're only claiming to make $30k per year.
IMTopgun
Power Member
- Sep 5, 2011
- 737
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Have you withdrawn any money from your paypal account associated with the eBay account? If so, you will be liable for any income taxes in the jurisdiction you live in. Makes ure you keep track of your expenses in case you need those to offset any income.
zebrahat
Elite Member
- Aug 6, 2008
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This. As a practical matter, taxes are largely an issue of the US and a couple of other governments insisting on income reports, especially if it is claimed to approach levels like $20,000. These reports become the basis for presuming a tax liability, whether one really exists or not. Since most IMers are not domiciled in the US (which technically, includes most Americans) and do not approach $20,000 in eBay earnings, a simple manuever like the above should be all that is needed to bypass the reporting hassle and tax gestapo. Activity spread across enough pseudonym or stealth eBay and PP accounts (the latter can be 'virtual SSN' confirmed accounts provided by a few vendors) should make it a non-issue.
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Furious George
Supreme Member
- Dec 13, 2012
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I assume you're in the USA.
The IRS doesn't give a flip about you selling under an alias. They only care about paying tax on income.
The IRS doesn't give a flip about you selling under an alias. They only care about paying tax on income.
zebrahat
Elite Member
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Re: being "in the USA," the assumption is misleading. The "USA" (states of the union) and the US (DC and federal territories) are legally distinct entities, and not all earnings are "income" in the law (which apply to federal workers only). Most Americans are private workers domiciled outside the "US" and thus not subject to reporting or "paying tax on income," or the IRS's presumptions or determinations. More info on these details are at sedm.org.
So as a path of least resistance, financially operating under pseudonyms and non-US addresses efficiently deprives the IRS of a basis for misapplying tax liability and reporting rules to those who do not fall under their jurisdiction. If your earnings, deposits and transactions are not known to them or readily traceable by an SSN associated with you, there is no basis for them to assess or enforce an erroneously presumed liability.
So as a path of least resistance, financially operating under pseudonyms and non-US addresses efficiently deprives the IRS of a basis for misapplying tax liability and reporting rules to those who do not fall under their jurisdiction. If your earnings, deposits and transactions are not known to them or readily traceable by an SSN associated with you, there is no basis for them to assess or enforce an erroneously presumed liability.
Furious George
Supreme Member
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You might want to check your sources.... irs.gov
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Unless you have a debit card connected to your paypal with your fake name on it and you are only withdrawing cash from ATM's then you need to be paying taxes. I highly recommend you be a good citizen and pay your taxes anyway to avoid any real trouble.
GreenGoblin
BANNED
- Jul 17, 2008
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exactly! I don't know why the hell people are trying to beat the IRS i mean...there's no real way to beat them
zebrahat
Elite Member
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The issue is not 'beating' them, but correcting their false presumptions, and not giving them administrative ammunition (tax reports) to press those presumptions in the first place. You can succeed if you keep yourself judgment proof, things out of your name, and challenge all assessments. The simple tactics mentioned in this thread enable that, or prevent it from becoming an issue.
As I have said before, I have not filed or paid in 13 years, and the IRS has backed down when I stood my ground---so yes, resistance is not futile. I highly recommend Americans be good citizens in the constitutional sense, and reject erroneous or fraudulent misapplications of the tax code against them, instead of acting like fraidy cat tax slaves.