1099k with out meeting the requirements?

[TurboTalon91]

long story short I got notification from paypal that it is sending a 1099k to the IRS. The issue is I did not meet the requirements making only about 12k. Most of that money come from selling of unused hobby based items on ebay and a few higher priced car parts that technically over the long run dont really account for "profit" as more or less getting some money back. So am I **bleep** over on needing to pay tax on these items?  

[sharpiemarker]

@TurboTalon91 

To clarify, the 1099k is issued according based upon on gross payment volume from sales of goods and services in a calendar year. So a distinction isn't made because of "a few higher priced car parts that technically over the long run dont really account for "profit" as more or less getting some money back".

Now the thresholds are 200 transactions and $20k but for States MA & VT, they are lower...$600 regardless of # of transactions, do you live in MA or VT? 

[TurboTalon91]

No I am not, I am In IL. 

[VJG-Marketplace]

You can take deductions on the 1099-K such as ebay fees paid, shipping and handling costs as well as the original costs of items you actually sold.  The 1009-K reports gross sales volume, it does not deduct or make the distinction of these other costs the seller has.  This would then result in the "actual" profit that you would have to pay taxes on.