Just finished reading this thread and I was wondering if any of you very active sellers have ever received a 1099-K from PayPal?
PayPal is required by the IRS to issue you one and send a copy to the IRS if your total amount of such transactions exceeds $20,000 and the aggregate number of such transactions exceeds 200 in a given tax year. Understanding Your Form 1099-K | Internal Revenue Service
Also just beware that several states have a much lower annual dollar amount threshold that will generate a 1099-K
I have read that in Vermont, Massachusetts, Virginia, and Maryland it is $600 in gross payment volume from sales of goods or services in a single calendar year regardless of the number of transactions.
Getting a 1099-K will mean that the IRS will want you report and to pay tax on any "profit" from your sales.
Not the kind of thing you want to find in your mail box....
