I got a notice in September last year telling me that I owed the 740 dollars for 2002. I worked 2 months doing construction for a guy that told me I was going to get paid under the table/tax free. Then I call the IRS after i get the notice and they tell me that this dude reported the amount he paid me to the IRS. I have tried calling him and my friend who helped me get hired with him. I have still not been able to get a hold of them.

Fine. I accept the money I owe. So, I decide to set up an online bank transfer through EFTPS. My installment agreement with the IRS is due the 22nd of every month. I go on there today to send in my transfer and I say the due date is the 22nd. However, it won't let me do it because the 22nd this time around is a saturday. So then I just spent 30 minutes on the phone with the IRS to find out if it is going to put me in "default" on my payments. The lady tells me it might be ok but I might get my wages garnished now. BLEH. I hate employers that lie about how they're paying employees.

I make very little money as is. The last thing I need is more penalties for paying late.

That sucks. On this topic does anybody know what I shoudl do in regards to Ebay sales. I woudl prefer not to get hammered as well, but I would prefer to not pay taxes as well.

Under-the-table jobs are the best... That is, if they're really under the table.

I'm not sure the IRS would have any way of knowing about your EBay sales, unless you reported it,

How much in sales? I mean are we talking a couple hundred bucks or a couple thousand?

maybe like $5000
but not in profits of course

I haven't done 1040's (beside my own) in a couple years, so I'm not sure. But, I can probably find someone here who does.

Actually, I would like to know the answer to this myself, seeing as I've sold a lot of CDs on eBay. But the CDs I've sold were CDs I bought so I really didn't make a profit.

My initial thoughts are that neither of you have to report anything because you bought it, used it, sold it, and can't depreciate it....but I don't want to be responsible for you being pulled into litigation by the IRS. I'll get back to you later on it.

Thanks!

I didn't think that e-commerece was taxed. But I am absolutely clueless on this type of thing.

There's been some changes in the tax code over the past year regarding e-commerce, but again, I don't deal with that aspect very often. I think if you resale items or are a retailer...you are taxed, but if the items are personal property...then you escape taxation. The consumer side of e-commerce deals with state tax anyway (which would be a sales tax). Technically, you're not suppose to be taxed by a state for any interstate transaction in where a company (that you're buying the good from) doesn't have substantial nexus, but federally you can't escape it.

Our 1040 partner was out...I'll ask her next time she's in the office.

Accountant buddy is not liable for this advice:

If you make more than 1000 USD net on sales of personal property (what you get from paypal less your cost less ebay fees less postage), you're liable. If you fill out online, even if it's less you can put it in when they ask about sale of personal prop; it's not much hassle and you won't get taxed, you'll just look super-honest.

Okay, if you sold the items on ebay at a loss...then you don't report anything on your tax return (you can't take a loss on personal property). If you sold them at a gain, then you have to report the income. It might be a good idea to note what you sold and each loss to keep with a copy of your tax return just in case the irs perform an audit on you (which is extremely rare), but you can never be too careful. The note will show you had good faith.