Unfortunately it is very legit.
You can thank the IRS for it too. More specifically the state you live in is trying to collect sales tax on internet sales.
In Ohio there is block you check off on the state tax form and you're supposed to enter the amount you spent online then pay sales tax on that. Yeah, right!
But good ol' Paypal is going to rat you out to the IRS.
I have a friend who sells heavily on ebay and accepts Paypal, he actually gets a 1099 from Paypal and required to verify ID several times a year. He *****'s about Paypal constantly, but feels his options are limited. ebay gives sellers so few options.
