|Tue Dec 5 2017 22:52:07|
eBay Seller of Used Cosmetics Cops to Tax Fraud
By: Ina Steiner
If you sell online, report your earnings to tax authorities - that's the lesson an eBay seller learned after being sentenced to three years' probation, including a period of home confinement, and ordered to pay a fine.
While prosecutors focused on the tax fraud aspects of the case, we were interested to learn how the seller obtained the goods she sold. According to a US Attorney, who had urged the court to sentence the seller to jail time, the seller obtained the goods through her husband's waste-disposal business which was allegedly contracted with QVC to dispose of returned cosmetic products.
Prosecutors said this was not a small-time operation - they said the seller sold online to consumers and also had twenty-three distributors that resold her ill-gotten items.
The US Attorney said there was a known failure on the part of the seller to report $1.6 million in income selling used and returned cosmetic products from 2009 through 2014.
It seems it can be lucrative to sell online when your product costs are zero - as long as you don't get caught cheating on your taxes.