Selling on Pokebeach

B

Bawksie

(:
Member
Not sure where else this would go, so, I'll put it here.

Anyways, so my tournament organizer who runs my local place is reporting me to the goverment for not collecting taxes and paying/informing the government about my income. Since I sold on Pokebeach, and I didn't collect 5.5% sales tax and never reported it to the government, apparently I'm breaking national law, when everyone I asked to all never heard of such a thing.

Is this even a true thing? Because, that's quite stupid.

Oh, also, he said if you trade over $1,000 worth of stuff, and you don't report it, you get in trouble too.
 
I don't think you have to, because this is a "Blog Site" according to the Security on my Computer. On the other hand, eBay charges a fee, so Im not positive. I'm just about 90% sure you don't.

Sorry for not being much of a help.
 
Think of it this way: You're selling cards to your brother. You get money but have no way to charge tax. Why do they care?

Sorry if this is useless.
 
You're not in trouble, don't worry about it. It's not enough of a big deal for the government to get involved. If you were making like $10,000 a year though thats a different story
 
Your PTO is doing this?
A member of the Pokemon community?
What did you do to P.O. that guy??

But in all seriousness...
If an online retailer has a physical presence in a particular state, such as a store, business office, or warehouse, it must collect sales tax from customers in that state. If a business does not have a physical presence in a state, it is not required to collect sales tax for sales into that state. This rule is derived from a 1992 Supreme Court decision which held that mail-order merchants did not need to collect sales taxes for sales into states where they did not have a physical presence.
 
^Which I think explains why on eBay, when you see stores selling they say they'll only charge X% sales tax for X state, as opposed to in general.
 
I'm not a lawyer but, I'm pretty sure you don't have to file taxes for a piece of paper.
 
From http://www.irs.gov/taxtopics/tc420.html

Topic 420 - Bartering Income

Bartering occurs when you exchange goods or services without exchanging money. An example of bartering is a plumber doing repair work for a dentist in exchange for dental services. The fair market value of goods and services received in exchange for goods or services you provide must be included in income in the year received.

Generally, you report this income on Form 1040, Schedule C (PDF), Profit or Loss from Business. If you failed to report this income, correct your return by filing a Form 1040X. Refer to Topic 308 for Amended Return information.

A barter exchange or barter club is any person or organization with members or clients that contract with each other (or with the barter exchange) to jointly trade or barter property or services. The term does not include arrangements that provide solely for the informal exchange of similar services on a noncommercial basis.

The Internet has provided a medium for new growth in the bartering exchange industry. This growth prompts the following reminder: Barter exchanges are required to file Form 1099-B for all transactions unless certain exceptions are met. Refer to Barter Exchanges for additional information on this subject. If you are in a business or trade, you may be able to deduct certain costs you incurred to perform the work that was bartered. If you exchanged property or services through a barter exchange, you should receive a Form 1099-B (PDF), Proceeds From Broker and Barter Exchange Transactions. The IRS also will receive the same information.

Please refer to our Bartering page for more information on bartering income and bartering exchanges.

If you receive income from bartering, you may be required to make estimated tax payments. Refer to Publication 525, Taxable and Nontaxable Income, for additional information.
 
Report your T.O. for being a douche bag.

But seriously, if I were you, I would do something like hold the door for him (assuming your T.O. is a male) everyday for a month, then tell him you're reporting him to the police for child labor law abuse because he never paid you for your time as a part time door holder. Because, after all, according to the article that Omahanime posted, you holding the door is a service that could be considered barter material. When he asks where you found such information, tell him on the irs website you read when he reported you.
 
^ Lol
ANyways, its called a TCG= Trading Card Game, not NTCG= Never Trade Card Game.
So really you should blame tcg's for encouraging illegal proceedings with children.
 
Just point out to him, that if the IRS comes after you, the IRS might investigate everyone there as well. Does he want all that hate? Secondly if he gets any from PUSA for running it, that has to be reported as income too.
 
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