Changes are contained in the President’s 2008 budget proposal. Instead of targeting only Internet auction sites, the current proposal actually expands the definition of a “broker” to include middlemen that don’t actually function as the customer’s agent in a transaction—like eBay, for instance. Brokers currently need to file a form with the IRS that gives the name, address, and gross proceeds of each customer they work for; under the new proposal, many more companies would need to do the reporting.
Internet auction sites will only be required to report customer revenue information if the customer does more than 100 separate transactions in a fiscal year and generates more than $5,000 in gross proceeds.
Tags: Auction Sites, Budget Proposal, Current, Customer Revenue, Ebay, Fiscal Year, Gross Proceeds, Internet Auction, Internet Sites, Irs, Middlemen, Taxes