Feds Pass and Propose New Legislation Affecting eCommerce Sellers

August 4, 2008 · Filed Under Internet Marketing, News, Onlineauction.com, amazon, eBay, ecommerce, paypal · 3 Comments 

IRS Rule Attached to Foreclosure Prevention Act of 2008 (Enacted) 

The federal government continues to seek ways to generate income from internet sales. In an amendment attached very quietly to the Foreclosure Prevention Act  of 2008 (S.2636) which President Bush recently signed into law, third party credit card or transaction processing services will be required to report to the IRS those sellers conducting over 200 transactions or those who do over $10,000 worth of transactions per year.

Providers such as PayPal, Google Checkout, and others will be required to provide a 1099 to the seller and the IRS to provide the government with the ability to tax internet sellers. This law will take effect in January 1, 2011.

Organized Retail Crime Act of 2008 (Proposed)

In this proposed legislation HR.6491 would require online auction sites like eBay, Amazon, Onlineauction, Overstock.com and others to retain information about high-volume sellers and provide that information to retailers and to law enforcement officials in cases where police reports have been filed.

It is estimated by the National Retail Federation that organized retail crime costs retailers between 15 and 30 million dollars annually.

With the epidemic of shoplifting and other forms of retail theft, this measure will provide a means for law enforcement to cross check for items that may have been illeagally obtained.

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