In an effort to crack down on under-reporting by individuals and businesses that sell goods online, an IRS official said the tax agency is discussing creating new tax reporting requirements.
The new reporting requirements could mean big changes for stand-alone Web retailers as well as individuals selling family heirlooms through popular online auction sites such as eBay Inc.

The IRS’ attempts to promote better reporting of online profits has been stymied by the fact that most online transactions leave behind very little evidence for the tax man to track, especially if shoppers don’t use a credit card or opt for an online payment system such as PayPal, which is also owned by eBay.

Representatives from eBay stressed that maintaining their clients’ privacy was of the utmost importance, but that they would turn it over to if the government request were accompanied by a subpoena.

“It will be an administrative nightmare to figure out who has to report and what has to be reported and trying to track these millions of people that buy and sell on the Internet.

Posted: 08|30|06 at 3:02 pm. Filed under: US News.