THE IRS HAS TAKEN MY TRANSACTIONS VIA PAYPAL AND IDENTIFIED THEM AS TAXABLE INCOME

Stop talking about it here, and hire a good "tax guy". If you profited on those sales, you'll owe some additional taxes.

Clio09 is spot on. You must hit 200 Transactions and 20K. If you sold 2 pieces on Audio Mart/Audiogon etc and 198 on EBAY thru Paypal and grossed 20K your screwed. Worst is they will require paperwork showing every sale and the +/- dollar value on each.  Saw it happen to the guy in front of me at H+R Block when getting my taxes done last year. He looked like somebody ran over his dog when they told him the news.

There was no Profitmaking, they were all losses, yet PAYPAL sent the IRS a 1099 statement.......There were 4 transactions, 2 Primaluna amps and a pair of Klipsch Forte III's and a Jolida JD9 MKII.

Your going to have to prove those losses with receipts of the initial purchase otherwise your screwed.  Did you call Paypal to ask why your transactions were reported to the IRS?  I mean clearly thats the very first thing you should have done.

eag618 OP75 posts08-06-2021 11:58amThere was no Profitmaking, they were all losses, yet PAYPAL sent the IRS a 1099 statement.......There were 4 transactions, 2 Primaluna amps and a pair of Klipsch Forte III's and a Jolida JD9 MKII.

If they sent the Feds a 1099, they would've sent you one, too.