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NEW PAYPAL AUDIOGON PAYMENT RULES

Hello.  I just went through the previously pleasant procedure of listing a pair of loudspeakers on this site.  Since joining the community five or six years ago I have logged over 100 transactions,  mostly using Paypal as a method of payment.When I arrived on the payment section of my listing I was directed to register with paypal as a merchant - which I am not - or register with Audiogon as a dealer - also which I am not.

I cannot even list my item as a COD sale because of the new guidlines.

I sent an email to Audiogon regarding this and the reply did little to resolve a very serious dilemma for private individuals.
Anyone experience this as well?
oblgny
uberwaltz's avatar
uberwaltz
13,381 posts
 
The IRS are already all over private sales thanks to PayPal reporting for last 3 years anyway.
At last count it was 34 states that have to report income earned ( IRS terminology not mine).
PayPal automatically send you and the IRS a notice of your revenue if over 200 transactions or $20000 USD.

In our hobby you could blow that in one deal!

Notice that PayPal do NOT differentiate between sales and friends and family gifts in their revenue notice.
This is something that I believe will be their undoing as rumours of a class action lawsuit for this reason are afoot.

However right now if you get a notice from PayPal you better declare it at tax time or the IRS will catch up with you.
oblgny's avatar
oblgny OP
849 posts
 
My transactions are far below $20k and/or 200 total. 
I like this site, but I’m gone. 
Best of the holidays, folks!
uberwaltz's avatar
uberwaltz
13,381 posts
 
Op
It will not matter what site you use as it is a PayPal thing they have cooked up with the irs.

Do not leave over such a simple matter as just adding the personal id that PayPal have already assigned to your account.
Two minutes and you are all done.
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