Question – How long do I need to keep eBay sales records for tax purposes? I’m a long-time seller on eBay and I’m getting ready to move. I have boxes of sales records from the last 5 years. Will I need these if I’m audited? I do have a legal business and collect sales tax for my state. It appears that Paypal only keeps records for 1 year unless I’m not looking in the right place.
Our response – The answer will vary slightly, but in most circumstances, records need to be kept for 3 years. https://www.irs.gov/businesses/small-businesses-self-employed/how-long-should-i-keep-records