This was mentioned in some other newsgroups.
You'd think this would be an IRS "no-brainer".
E-commerce is very well recorded. Paypal is the financial
clearing house of the largest collection (eBay) of
semi-professional web businesses. I'd expect at some point
such clearing houses would have to issue something like a
1099-B characterizing cash-flow activity above some hobbiest
threshhold. Then people would have to flesh these out on a
Schedule-C.

(This is only speculation, not current regulation.)

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

A blurb from BNA:

A Justice Department official confirms that a federal judge
has authorized a John Doe summons on Paypal Inc. in an
effort to get information on transactions involving offshore
accounts, but says the inquiry still is in the initial
stages. Assistant U.S. Attorney General for the Tax Division
O'Connor says the summons is only intended to get
information that is already in Paypal's possession. The
government's efforts have not yet gone further, she tells
reporters. "This is just fact-finding at this point,"
O'Connor says.

To get the full report you must be a BNA subscriber.
Business Week has an article about it at:

http://www.businessweek.com/ap/finan.../D8GU0KI0B.htm

---
Drew Edmundson, CPA
Cary, NC

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >