I recently read an article titled “IRS urged to go after eBay sellers,” which mentioned the possibility of a proposal that would require eBay to collect taxpayer identification numbers from clients (sellers) and report their sales of personal property to the IRS on a 1099 form if sales surpassed 100 transactions or more than $5,000 annually.

Personally, I’m 50/50 on this issue. I know that requiring users to submit their taxpayer identifcation number would help in verifying users, as well as preventing, detecting & locating fraud, BUT would also scare off current & potential sellers. Auction giants like eBay can not survive without sellers.

I can see where the IRS is coming from on this issue. There are thousands, if not, millions of people who make a living off eBay, which the IRS believes (if true at all) that a very small percent claim this income on their taxes. I strongly feel that if you make a living, or operate a business (domestic or commercial) that you should pay your taxes.

What I want to know is:

1. How do you feel on this issue?
2. How would you react to online auctions sites that mandated the need of this information?

I look forward to reading your comments.