Overlooking or forgetting to file your taxes from selling on eBay will lead to scrutiny from the IRS in the future. This guide will explain to eBay sellers everything they need to know about filing taxes accurately and on time. If you have consistently mpney sales or are purchasing items with the intention of resale, then you have started an online auction business. Additionally, the IRS considers your activity a business if you have made a profit during three of the last five years, including the current year. This is common for sellers on eCommerce marketplaces. As a business filing taxes, you also have deductions that you may be able to report as .