Define gross payment amount that should be reported to the IRS
What is defined as gross payment for a seller in regards to reporting to the IRS. For example, if a buyer made a purchase of $25 + 10.90 shipping + 2.28 making the purchase total 38.18 and paypal takes out 1.41 and tax collected by ebay of 2.28 goes out making the purchase total 34.49, what part of this is considered gross payment?
Thank you for your post! To determine what your responsibilities are regarding the amounts that need to be reported, you may need to contact the IRS or a tax professional. PayPal cannot provide guidance regarding what amounts need to be used for tax reporting.
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