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

Grow up, not a big deal.  Provide support.  Move on.

Further, prisons have horrible accoustics.  Bad taste in music is widespread. Horrifying. Confess yur sins.  

Crypto your $$ and the and then hardware wallet that... 

I receive a 1099 from Paypal for eBay sales of less than $5K a year so the $20K minimum isn't necessarily true. Filing a Schedule C allows you to deduct the costs and expenses. 

Hey guys politics aside, this is a new thing in the past year where several STATES (not the IRS) passed laws greatly reducing the threshold for reportable 1099 income. The intent was to “legitimize” much of the gig economy that is paid off the books and was unable to qualify for COVID-related benefits etc.

But the side effect is that average hobbyists who buy and sell gear (audio or otherwise) are now getting pinched by PayPal who are just following the new state laws. And once they follow the State laws and send out the 1099s, then the IRS gets copies as well and this is what happens next.

A lot of folks who bought gear and sold it at a loss to finance new gear are ending up with reportable income from PayPal. For example in Virginia, the federal thresholds remain the 200 transactions or $20,000. But VT, MA, VA and MD lowered that threshold to $600. IL lowered it to $1,000.

https://www.paypal.com/us/smarthelp/article/FAQ3895