Selling Personal Items Online May Trigger Tax Reporting – Clear Start Tax Explains When Casual Sales Become Taxable

As resale apps and online marketplaces grow, tax experts warn that casual sellers may be crossing into reportable income without realizing it.

IRVINE, CALIFORNIA / ACCESS Newswire / December 15, 2025 / Millions of Americans use online platforms to sell unused furniture, clothing, electronics, and collectibles, often assuming that occasional sales are tax-free. However, tax professionals say increased IRS reporting requirements mean that even casual online sellers could face unexpected tax paperwork – and in some cases, tax liability.

According to Clear Start Tax, the rise of digital payment platforms and resale marketplaces has expanded the IRS’s visibility into online transactions. While selling personal items at a loss is generally not taxable, certain situations can still trigger reporting and scrutiny.

“Many people think, ‘I’m just cleaning out my garage,'” said a spokesperson for Clear Start Tax. “But when sales activity becomes frequent, profitable, or organized, the IRS may view it differently.”

Tax reporting forms issued by payment processors can be triggered based on transaction volume, regardless of whether a seller actually owes tax. This has led to confusion among taxpayers who receive forms even when their sales resulted in no profit.

“Receiving a tax form doesn’t automatically mean you owe money,” the Clear Start Tax spokesperson explained. “But it does mean the IRS is aware of the activity, and you may need to document what you sold, what you paid for it, and whether there was a gain.”

Clear Start Tax notes that problems often arise when sellers can’t locate original purchase records or assume small amounts won’t matter. Inconsistent reporting, or failing to address a reporting form altogether, can lead to follow-up notices from the IRS.

“The urgency comes from misunderstanding, not wrongdoing,” the spokesperson said. “People aren’t trying to avoid taxes – they just don’t realize how online sales are tracked today.”

With resale platforms continuing to grow, tax professionals recommend that online sellers keep basic records and seek guidance before ignoring any IRS forms tied to digital transactions.

By answering a few simple questions, taxpayers can find out if they’re eligible for the IRS Fresh Start Program and take the first step toward resolving their tax debt.

About Clear Start Tax
Clear Start Tax is a national tax resolution firm that assists individuals and businesses with IRS-related issues, including tax debt, compliance questions, and collection challenges. The firm focuses on practical education and personalized solutions to help taxpayers resolve issues and move forward with confidence.

Need Help With Back Taxes?

Click the link below:
https://clearstarttax.com/qualifytoday/
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Contact Information

Clear Start Tax
Corporate Communications Department
tech@clearstarttax.com
(949) 800-4011

SOURCE: Clear Start Tax

View the original press release on ACCESS Newswire