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

The irs said I didn't pay my taxes for 5 years, what should I do.🤔

The Form 1099 only reports gross sales proceeds, not gain that is taxable, because eBay (like a broker) doesn't know how much you originally paid for the item sold. Similarly, the IRS does not know, so if you failed to tell them, they assume it's all gain and taxable. That's why any time you receive a Form 1099 (eBay should have sent you one), you should report the amount on your return, show the basis (which is typically more than the sales proceeds, so resulting in a loss, non-deductible for hobby items), and show the loss (or gain, if you have any). That avoids having to deal with the IRS in the future. Above all, don't miss the deadline to reply to the IRS! You can normally get an extension of the deadline (by phone if you can get through) if needed to find your info, or respond with general explanation and expect to need to file evidence of purchase price.

I’m moving off PayPal seems like it’s time.

zappas--If the IRS says that, likely see a tax accountant. Did they say you "did not file returns"? Or that you filed returns showing a tax was due, but did not "pay the tax"? If you filed, you need to work with the IRS to find the lost returns, if you have copies, or your name changed, or whatever. If you did not file, you (or a tax accountant) need to figure out if you actually owed any tax for that year. The IRS only has info on your income, not your possible deductions, so they assume no deductions if you ignore them. Don't let a deadline for responding pass! Sometimes people discover that their withholding was more than any tax would have been, so they could have gotten a refund, but by failing to file on time they not only have to deal with the IRS to show that noting was actually due, and avoid making a payment (with interest and penalties), but the time to get a refund may have expired. Good luck.

Meanwhile one new billionaire every 17 hours. Billionaires' wealth increased 54% during pandemic while 8,000,000 Americans fell below the poverty line. The ordinary person is taxed to the hilt supporting the country while these guys play with their toys.