To All,
I received an email requesting I answer a tax question involving ebay. I normally don't give free advice.<g> In this case I will answer the question publicly but not elaborate.

When an individual places an item for auction on ebay a permanent record is created for that item. Who, What, Where, When and How Much are all answered and stored for posterity. All relevant information pertaining to the buyer is also filed.
What is the significance of what I have just stated? Simple, if I as an IRS agent wish to obtain ALL sales for 1999 or 1998 or 1997 for Mr. Joe Blow. I issue to ebay a summons requesting all information pertaining to Joe Blow for the year in question. I request any and all sales, regardless of items, for Joe Blow. I now have a complete log of all Joe Blow's sales. It would be very difficult for Mr. Joe Blow to prove these were not his sales. Case closed!!! Best, Jim