Law Articles And Legal Issues

Tax Issues For Ebay Sellers And Online Businesses

If you sell on eBay, or if you have an online business, listen up. There are several tax issues in the news right now that could have a huge impact on the way you do business.

The first issue, and the one that is getting the most attention, is Congress's push to get the IRS to force brokers (companies such as eBay and Amazon) to report personal data on their customers.

In this proposal, brokers (such as Amazon and eBay) would be required to report names, addresses, and gross proceeds of each customer that completes more than 100 separate transactions and generates more than $5,000 in gross proceeds each year.

Most likely, companies will report this information for all of their customers because they won't know who will meet the criteria above until the end of the year.

This proposal could cause problems for smaller companies. Not only will collecting this information be costly, but smaller companies may not have the technology to keep this data safe from hackers. The Center for Democracy and Technology is concerned about the safety of the personal data collected, and rightly so, given how much fraud and identity theft takes place today.

The proposal could have a negative affect on ecommerce, as some customers may shy away from doing business on the internet if they are required to provide Social Security numbers.

If passed, the proposal will be effective beginning January 1, 2008. There is no indication that there will be any retroactive treatment for the new law.

Secondly, state and local taxing authorities are pushing for the ability to impose sales tax on sales made online. Currently, eBay sellers and online business owners are not required to collect sales taxes on items that are sold and shipped to customers in another state.

If the state the eBay seller or business is located in has a state or local sales tax, then you are supposed to collect sales tax on items sold and delivered to the same state, but many people are not complying with these rules.

Every state (and many localities) has their own sales tax rate and rules, so the Streamlined Sales Tax Project was introduced to help simplify the collection and reporting of sales tax. Without some simplification, the cost to small businesses to comply with sales taxes would be tremendous.

Finally, the Internet Tax Freedom Act, which was created to promote the growth of the internet, is set to expire in late 2007. This act prohibits companies from taxing internet services, and if this act expires, small businesses would be hurt the most.

States and local taxing authorities are eagerly awaiting the chance to collect taxes on internet services, but many companies, such as AT&T, Comcast, NetChoice and others, are lobbying for a permanent moratorium on this tax.

All of these issues could have a huge impact on eBay and other online businesses, so if you make your living online, you should keep your eyes and ears open for news regarding these tax issues.

Note: This article was written May 27, 2007. Tax laws change frequently, so please check with your tax professional if you have any questions about the tax issues discussed above.

Kristine A. McKinley, CPA, and CFP?, offers financial and tax planning on an hourly, fee-only basis. She specializes in helping online business owners understand and minimize their income taxes. For more tax tips for online businesses, please visit http://www.onlinebiztaxtips.com

Other Article Sites

findabook.com  moneycd.info  a-mortgage.info   about-lemon-laws.info  aboutstudentloans.info
all-about-publishing.info  auctions-articles.info  bestcollege-university.com  bestispconnection.com
biblefolder.com  blogger-website.com  books-used.info  brokers-guide.info  buywindows.info  cable-dsl.info
career-miner.com  carpel-tunnel.info  cashinaflash.info  cashloanreviews.info  casinobell.com  chat-house.info
clearmycredit.info  collegeloantips.info  crones.info  depression-articles.info   dirnic.net  dishguides.info
divers-below.com  expodog.info   financewizz.com  fire-insurance.info  getgood.info  handleit.net   it-idea.info
health-supplies.info  hosting-right.com  insidealert.com  insurance-facts.info  jobs-employment.info
justgood.info  lookgold.net   lowcost-travel.info  money-source.info  myhostzone.info  numisblog.com
peoplesearchfinder.info  pr-articles.info  realeas.com   refinancing-guides.info  spyware-remove.info
telelot.info  the-law.info   toppaid.info  travel-deals.info  travelcorrect.com  wedding-guide-site.com
your-blog.info  your-credit.info

Other Law Sites
Search The Internet For Other Law Sites

Law Books
Search For Law Books At FindaBook.com

Kirsten Branigan Joins McDonald Law Group, LLC Adding Depth in Employment Law
Kirsten Branigan and Nancy McDonald join forces with a shared passion--advocating for advancement of women in the practice of law.

Legal Services of Labor Law Attorneys
Labor law attorneys deal with a broad range of labor issues mainly related to how employers treat employees, former employees and applicants for employment. This includes all the areas of the employer-employee relationship, negotiations, and the collective bargaining agreement.

Tax Attorney Site Answering More Questions on New Tax Laws
TaxAttornyHelp.com, an online tax law attorney service provider, has answers to questions on new tax laws that affect filers in 2008.

Monroe, N.C. Family Law Attorneys Merge Practices to Form Stepp Lehnhardt Law Group
Donna Stepp and Dana Lehnhardt combine local practices and operations, creating 4-attorney general practice law firm with emphasis on family law

Pending Federal Law Threatens All Copyright Owners says the Hodgson Law Group
The Shawn Bentley Orphan Works Act of 2008 (S. 2913) "Orphan Works Act of 2008" (H.R. 5889) allows anyone to use a copyrighted work without first obtaining permission. The user can later claim that a diligent search was conducted but the owner could not be found in any later action for infringement. This new legislation will apply to all copyright owners whether or not the work was previously registered with the Copyright Office. The legislation threatens the rights of artists, photographers, composers, film makers, publishers, and visual artists says the Hodgson Law Group. The Copyright Office not only endorses this legislation, but also advocates further changes that go beyond the proposed statute in reducing copyright protection. T...

Legal Resource Local-Attorneys Expands to Include Divorce Law
Local legal resource website Local-Attorneys has announced that it is expanding to cater to divorce law specialists and visitors in need of advice. Web users will be able to browse local law firms who specialize in every sort of legal vertical. Find the best advice and attorneys in the industry.

CalBizCentral Announces Booklets to Help Businesses Navigate State, Federal Employment Laws, Reduce Legal Risk
CalChamber's CalBizCentral 'What Every Manager Needs to Know About' series provides training managers need to comply with confusing laws.

New Legal Guide to Divorce by Family Law Expert
A brand new legal guide to divorce, "Divorce and Separation Today", has been newly published by DragonCub. Far more useful than the average divorce guide, it delves into how the divorce courts operate as well as providing practical and sensible advice on emotional and other sensitive areas. It is an essential guide for anyone considering or going through divorce.

Elizabeth A. Kreitzer, Certified Family Law Specialist, Joins Klinedinst Family Law Group
The California-based law firm of Klinedinst PC has added Elizabeth A. Kreitzer, Certified Family Law Specialist, to its expanding Family Law practice group. Ms. Kreitzer's addition, combined with the strength of the firm's existing litigation teams, will help ensure that every client receives sophisticated, professional and compassionate representation, Ms. Kreitzer is the recipient of the Michael C. Shea Chair in 2005, and adds a wealth of family law knowledge to the department. She is experienced in working with sophisticated clients handle complex family law issues, including divorce, paternity and custody disputes, prenuptial agreements, adoption proceedings, and other family law matters.

Tax Attorney Web Site Warns of Upcoming Tax Laws in 2008
TaxAttorneyHelp.com, an online network of tax attorneys, is preparing to assist taxpayers with new laws in the coming year.

New York City Construction Accident Lawyers Lobby for Safer New York State Labor Laws
Recent construction accident news supports David Perecman and Doug Fanning's stance that New York State labor laws need to be updated and strengthened to protect worker's rights.

Central Florida Family Law Lawyers Appel & Gaines Offers Creative and Collaborative Divorce Solutions
The lawyers at Appel & Gaines, LLP experience first hand their client's struggles with the emotionally challenging, destructive and costly process of divorce in Florida. Therefore, their attorneys frequently suggest to clients that they initiate a "collaborative" approach to resolving their family law issues.

Copyright Infringement Cases Can Teach Us To Obey Copyright Laws
Copyright infringement cases can be both costly and time consuming. Considering copyright infringement is something that isn?t as easily defined as theft or speeding, there are numerous copyright infringement cases changing the way copyright law is viewed in the U.S. By reviewing a few of these copyright infringement cases, you can get a better idea of what is, and what is not, acceptable use of copyrighted works.

Lemon Law Attorney, Dana Lynn Tarquini, Featured at Lemon Law Administrators Conference
Ms. Tarquini, one of the country's most prominent lemon law attorneys, participated in panel discussion at the 10th anniversary lemon law administrators conference in Atlantic City.