Jim 'Griff' Griffith

Understanding Tax Liability by Jim 'Griff' Griffith eBay Staff Member Q: I am hoping to sell full time on eBay someday. Do I need a tax ID number or business license to sell on eBay? How do I report any revenue to the government? Can you guide me in the right direction?

A. Although I am not authorized to provide advice or counsel on any matters regarding taxes, licenses, etc., you can find good sources of accurate information on the Internet if you are careful to scrutinize the sites from which you garner the information beforehand.

You can locate your state's sales and income tax Web site by searching the Internet (www.google.com or www.yahoo.com) using your state's name and the words "sales tax", or type in search words like "New York state sales tax."

Look for any links that end with ".gov".

The IRS Web site will explain if you owe income tax on the sale of personal property and will also guide you through the forms and procedures for filing correctly. If you are considering doing this on a regular basis, the Small Business Administration Web site will prove extremely helpful.

Regards,
Griff