In the US, eBay and PayPal are going to start reporting to the IRS in January of 2012 for 2011 sales. To be reported in the states, you have to have *both* more than 200 sales and 20k in total sales - so you could sell 199 items for 20k+, or 200+ items for under 20k, and not get reported.

Lots of people are up in arms about this, saying how it's not fair etc. What's not fair is the guys selling that quantity of stuff and not reporting, while those of us who sell legitimately and claim the income get taxed!

They also mistakenly think they will be taxed on 20k if they sell 20k. Should realize that 20k sales is not 20k profit. But, I could complain about that all day long and it wouldn't make a difference :)