"As for your paperwork. kept very good records as to why the tax amount collect on the sale is different from what your eBaY/PayPal invoice shows cause if you ever get audited and they see the difference you can tell them why, notes are a good way to keep track. "
No problem there - DH is a retired accountant so, while his knowledge of current tax law is not up-to-date, his accounting skills are good! Also, over the past years of being self-employed, we've been audited 3 times (no discrepancies or back taxes owing, but a HELL of a Hassle!!!!) Just as an aside, the tax you collect, if it's incorrect, has NO BEARING on the tax you have to submit! The law reads that taxes come off the top of any payment - if it's short-paid you have to pay it anyway and it comes out of your share of the payment.
PS ... if you're ever audited, make sure the auditor uses a calculator with a tape! We found several errors on our last audit when the auditor used a hand-held calculator with no tape and several errors! ALWAYS double-check their figures - the last one told us we owed $3,000 in back taxes ... our figures, on tape, showed his several errors and we owed NOTHING!!!! He wanted us to feel sorry for him for wasting that many hours with no problems - yeah, right!!
Glenda