Originally posted by: sadikyo
I think they are talking about the seller paying *income* taxes on profit for the business. dra600n was just pointing out that the income is taxable income and reportable, whether it is sold online, in a store, or out of a garage. Now, compliance is probably pretty low with online sales, as a lot of people skirt the rules unless they get a 1099, but it's all taxable income .
Exactly. Also, states are cracking down on this and are starting to enforce online taxes on more larger outlets. Most states have already started doing this:
https://www.amazon.com/gp/help/cu...
If you're not hitting the PayPal (or whatever processors) limit for getting a 1099, then you're probably fine. Otherwise, you'll most likely just get hit with a penalty fee and a fine from your state for not reporting and paying your sales tax on time.