Just wanted to share some information that I came accross today about the IRS tracking seller payment transactions beginning next yer. Read below.

Internet sellers who don't report their sales will no longer be under the radar. Starting next year, any bank or other payment settlement company that processes credit cards, debit cards, and electronic payments such as PayPal will have to issue information returns telling the IRS what merchants receive. The new returns are Form 1099-K, Merchant Card and Third-Party Payments. Read the full article here...

But don't worry my fellow ebayer's there is an exception built in that many of us small time sellers fall under. I found this bit of info below, in the article linked above:

Exception: Very small merchants won't be issued information returns. "Small" for this purpose means annual gross sales on merchant cards of no more than $20,000 or 200 or fewer transactions. In other words, reporting is required only if gross amounts for the year exceed $20,000 and there are more than 200 transactions.