I was selling digital items from a video game hardly considered a business on ebay.?

Question

But the goverment keeps sending me statements that I owe them taxes else they send the irs after me lol. This is ludicrous, what I sold was hardly a business I did not make money at all. Do you think the reason why they are hawking me is cause I registered a business #? Well, I was thinking of the dropshipping business but it didn't work out but I got to lazy to cancel the business # registration do you think this is the reason for all the problems?

Answer 1

the sales from ebay would just be the sales - you have to show proof of the cost of the items you sold and your ebay fees and commissions and any other business expenses - you probably won't owe much of anything tax wise once you deduct all those costs

Answer 2

It's refreshing to hear that eBay is handing over the information.  They always said they would, but you didn't hear of it much....

The business ID probably has nothing to do with it.

Answer 3

You have to file a return and include your expenses  to offset that amount.   If you already filed, file an amendment including all the proof. Otherwise, yes, they will come after you for it.  They can seize your next return to satisfy the debt.