Message Font: Serif | Sans-Serif
No. of Recommendations: 1
I've never worked with an on-line auction, but it is conceivable that the auction service company would report the proceeds of the sales on a 1099. If they do this (and I'm by no means certain that they do), it's an almost guaranteed letter from our friendly tax folks saying they can't find where the 1099 is reported on the return. Included will be a bill (generally of jaw-dropping proportions) for their idea of the taxes, interest, and penalties due. Your friend's could be exceptionally large, since this is probably self-employment and would include SE tax on top of the income tax.
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.