Gary, To answer your second question.
The trigger point is 200 transactions / year. In other words, the eBay sellers who are just selling their stuff (your guitar) will not have an issue because you won't hit 200 CC transactions in one calendar year. Thanks, Tom Hargrave www.kegkits.com 256-656-1924 -----Original Message----- From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED] On Behalf Of Gary Hurst Sent: Friday, August 29, 2008 11:31 AM To: Mercedes Discussion List Subject: Re: [MBZ] Recent IRS Ruling (no joke) ah, well, then everybody just get a tax ID number, i suppose. i think they are free from the IRS or at least cheap. every mexican in the barrio seems to have one, so i presume y'all can get one too. it still defies logic though as most people at some point have paid for the stuff they are selling and, as is often the case with guys like me, selling it for less than they paid. i mean, suppose i go to the store and buy an electric guitar for $250, only to discover that i really am too old to rock n roll and might not even be too young to die. as it takes me a year to discover this, the store is not inclined to take back the guitar, so i try my luck on ebay, where i get 150 for it. so now i'm $100 in the hole and the government takes a cut of $42 as my "fair share" on that transaction to pay for the iraqi genocide? you see a problem here? On Fri, Aug 29, 2008 at 12:12 PM, Tom Hargrave <[EMAIL PROTECTED]> wrote: > Gary, > > The 28% withhold requirement will only apply to merchant account holders > who > have their account registered with a SSN. Grocery stored and most (probably > 99% +) businesses have a FEIN & don't use a SSN. In other words, the > withholding requirements will not apply to them. > > The impact to this ruling will be to the small shops who, for what ever > reason, do not have a FEIN. A lot of small eBay sellers fall in the > category. > > Thanks, > Tom Hargrave > www.kegkits.com > 256-656-1924 > > > -----Original Message----- > From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED] > On Behalf Of Gary Hurst > Sent: Thursday, August 28, 2008 11:06 PM > To: Mercedes Discussion List > Subject: Re: [MBZ] Recent IRS Ruling (no joke) > > this doesn't make any sense. what sort of margins does a big supermarket > chain operate one? > > let's say 5 percent, although i understand the total is lower. so they > will > be losing 23 percent on every card sale (which is a lot), which they can > recover in a year or so? > > this would put nearly everyone who operates on taking credit cards out of > business. not even my government is quite this stupid. > > On Thu, Aug 28, 2008 at 1:57 AM, Tom Hargrave <[EMAIL PROTECTED]> wrote: > > > John, > > > > This is not the same ruling. > > > > Here's the one I am talking about: > > http://taxes.about.com/od/businesstaxes/qt/cardreporting.htm > > > > And it starts in 2011, not in 2010 or 2009. > > > > The triggers are gross receipts over 20K or 200 transactions / year. It's > > easy to cross 200 transactions / year without getting close to 20K with > low > > dollar eBay sales. > > > > The impact on small eBay sellers is that most are running a margin of 20% > > or > > less after covering their material cost, eBay fees and PayPal fees. And > > most > > don't have a FEIN. Without a FEIN, their gross receipts (and not just > their > > margin) will be subject to 28% withholding. Also, I suspect that most > don't > > pay income tax and with low margins, selling on eBay will not be worth > the > > effort. I suspect that a lot of them will just drop out of the eBay game. > > This is why I stated that the ruling would hurt eBay. > > > > Thanks, > > Tom Hargrave > > www.kegkits.com > > 256-656-1924 > > > > > > -----Original Message----- > > From: [EMAIL PROTECTED] [mailto: > [EMAIL PROTECTED] > > On Behalf Of John Freer > > Sent: Thursday, August 28, 2008 12:17 AM > > To: Mercedes Discussion List > > Subject: Re: [MBZ] Recent IRS Ruling (no joke) > > > > According to http://www.snopes.com/politics/taxes/paypal.asp, this is > > true but the intent is to review only offshore transactions. Also > > applies to more than just credit cards though. > > > > On 8/27/08, Tom Hargrave <[EMAIL PROTECTED]> wore rote: > > > A recent IRS ruling will require all CC processors (merchant accounts) > to > > > report revenue to the IRS. And if your CC merchant account is setup > with > > a > > > SS# instead of a FEIN#, your processor will be required to withhold > > income > > > tax against the revenue. > > > > > > > > > > > > The ruling will affect all PayPal accounts that are setup to accept > > credit > > > cards since the front end (the CC processing part of PayPal) is > > classified > > > as a merchant account. I don't know how PayPal will handle accounts > that > > do > > > not process credit cards. > > > > > > > > > > > > I was wondering how the IRS was going to get their arms around the cash > > > flowing through eBay and now I know. I'm sure that this ruling will put > a > > > few nails in eBay's coffin or at least it will slow them down a little. > > > > > > > > > > > > I gave up on eBay earlier this year because I could not compete with > > other, > > > smaller beer equipment resellers who I'm convinced are not paying any > > income > > > tax on their sales. From my point of view, the ruling will help to > level > > the > > > playing field. > > > > > > > > > > > > The ruling goes into affect in 2009 or 2010 (don't remember which). > > > > > > > > > > > > Cynthia, > > > > > > > > > > > > Thanks for the info. > > > > > > > > > > > > Thanks, > > > > > > Tom Hargrave > > > > > > HYPERLINK "http://www.kegkits.com"www.kegkits.com > > > > > > 256-656-1924 > > > > > > > > > > > > > > > > > > > > > No virus found in this outgoing message. > > > Checked by AVG. > > > Version: 7.5.526 / Virus Database: 270.6.9/1636 - Release Date: > 8/26/2008 > > > 7:09 PM > > > > > > _______________________________________ > > > http://www.okiebenz.com > > > For new parts see official list sponsor: http://www.buymbparts.com/ > > > For used parts email [EMAIL PROTECTED] > > > > > > To Unsubscribe or change delivery options go to: > > > http://okiebenz.com/mailman/listinfo/mercedes_okiebenz.com > > > > > > > _______________________________________ > > http://www.okiebenz.com > > For new parts see official list sponsor: http://www.buymbparts.com/ > > For used parts email [EMAIL PROTECTED] > > > > To Unsubscribe or change delivery options go to: > > http://okiebenz.com/mailman/listinfo/mercedes_okiebenz.com > > > > No virus found in this incoming message. > > Checked by AVG. > > Version: 7.5.526 / Virus Database: 270.6.9/1636 - Release Date: 8/26/2008 > > 7:09 PM > > > > > > No virus found in this outgoing message. > > Checked by AVG. > > Version: 7.5.526 / Virus Database: 270.6.9/1636 - Release Date: 8/26/2008 > > 7:09 PM > > > > > > > > _______________________________________ > > http://www.okiebenz.com > > For new parts see official list sponsor: http://www.buymbparts.com/ > > For used parts email [EMAIL PROTECTED] > > > > To Unsubscribe or change delivery options go to: > > http://okiebenz.com/mailman/listinfo/mercedes_okiebenz.com > > > _______________________________________ > http://www.okiebenz.com > For new parts see official list sponsor: http://www.buymbparts.com/ > For used parts email [EMAIL PROTECTED] > > To Unsubscribe or change delivery options go to: > http://okiebenz.com/mailman/listinfo/mercedes_okiebenz.com > > No virus found in this incoming message. > Checked by AVG. > Version: 7.5.526 / Virus Database: 270.6.10/1638 - Release Date: 8/27/2008 > 7:06 PM > > > No virus found in this outgoing message. > Checked by AVG. > Version: 7.5.526 / Virus Database: 270.6.12/1640 - Release Date: 8/28/2008 > 6:58 PM > > > > _______________________________________ > http://www.okiebenz.com > For new parts see official list sponsor: http://www.buymbparts.com/ > For used parts email [EMAIL PROTECTED] > > To Unsubscribe or change delivery options go to: > http://okiebenz.com/mailman/listinfo/mercedes_okiebenz.com > _______________________________________ http://www.okiebenz.com For new parts see official list sponsor: http://www.buymbparts.com/ For used parts email [EMAIL PROTECTED] To Unsubscribe or change delivery options go to: http://okiebenz.com/mailman/listinfo/mercedes_okiebenz.com No virus found in this incoming message. Checked by AVG. Version: 7.5.526 / Virus Database: 270.6.12/1640 - Release Date: 8/28/2008 6:58 PM No virus found in this outgoing message. Checked by AVG. Version: 7.5.526 / Virus Database: 270.6.12/1640 - Release Date: 8/28/2008 6:58 PM _______________________________________ http://www.okiebenz.com For new parts see official list sponsor: http://www.buymbparts.com/ For used parts email [EMAIL PROTECTED] To Unsubscribe or change delivery options go to: http://okiebenz.com/mailman/listinfo/mercedes_okiebenz.com
