The Complete Tax Guide for E-commerce Retailers including Amazon and eBay Sellers: How Online Sellers Can Stay in Compliance with the IRS and State Tax Laws -

Fed up with the numerous violations of tax law by individuals and businesses selling goods on eBay, Amazon, and other websites, the IRS is pushing Congress to make online marketplaces responsible for reporting sales information. EBay’s own statistics suggest there are 1.3 million people around the world who make their primary or secondary source of income through eBay, with just over 700,000 of those people in the United States. Today, about 29 million people in over 160 countries use Amazon.com. Last year, an IRS advisory committee recommended that online auction sites be required to file reports of sales transactions with the IRS. The committee also suggested requiring sellers to obtain taxpayer identification numbers, which would let the government track the transactions.