IRS Agent Fails To Report $41,842 in eBay Sales

Bloomberg April 22, 2010, 2:38 PM EDT

An Internal Revenue Service agent was found liable for back taxes and penalties for not reporting income on nearly 2,000 transactions on EBay Inc., the online auction site, according to the U.S. Tax Court.

Andrea Fabiana Orellana failed to report $41,842 in income in 2004 and 2005 from sales of designer clothing, shoes and other items, according to a Tax Court summary opinion. Orellana is liable for $12,428 in unpaid taxes and $2,486 in penalties.

Orellana, who represented herself, sold items under several names, including “BlackTheRipper,” the court document said. She could not be reached for comment…..  Read Rest of Story at Bloomberg Business Week.


I am always telling my readers the importance of claiming income and paying taxes because the IRS can and will catch you if you don’t. Its interesting to see that the IRS has their own tax cheaters.  Well the head of the IRS is Treasury Secretary Timothy Gietner, who it was learned did not pay taxes on his self-employed income for two years. Perhaps IRS Agent Orellana thought –“Hey, if my boss can do that, why can’t I?”

Agent Orellana claimed that she didn’t have a business, but she was just cleaning out her closet.  That must be some closet if it resulted in $41,842 in sales.

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