New IRS enforcement efforts zero in on digital storefronts amid growing concerns about underreported income
IRVINE, CA / ACCESS Newswire / August 6, 2025 / As the IRS ramps up enforcement in 2025, online sellers on platforms like Shopify, Etsy, and Amazon may find themselves under increased scrutiny. According to tax resolution firm Clear Start Tax, self-employed e-commerce vendors could be especially vulnerable to audits and unexpected tax bills if they haven't been keeping accurate records or reporting all income.
The IRS has made it clear that digital sales will be a priority this year, with expanded use of 1099-K forms and data analytics to identify underreporting. Sellers who rely on multiple payment platforms or who haven't consistently filed returns may be particularly at risk.
"We're seeing a major shift in how the IRS approaches online income," said a spokesperson for Clear Start Tax. "What used to be considered low-risk side income is now front and center. If you're an e-commerce seller and haven't taken tax compliance seriously, this is the year to change that."
The tax agency is also working closely with third-party payment processors to match transaction data with reported income. Sellers who receive payments through PayPal, Stripe, or Venmo for business purposes may also be flagged if their tax filings don't align with reported figures.
"Even small vendors are being caught off guard by 1099-Ks showing up with higher-than-expected amounts," the Clear Start Tax spokesperson added. "Many don't realize that refunds, shipping fees, or canceled orders can be lumped in - and the IRS may still treat it all as income until you prove otherwise."
Clear Start Tax encourages e-commerce sellers to review their bookkeeping practices, ensure they are filing returns on time, and seek professional guidance if they have unfiled years or back taxes. Waiting until the IRS contacts you, they warn, can limit your options.
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.
"The worst thing you can do is ignore this. If you've fallen behind, there are ways to get back on track without penalties spiraling out of control - but the window to act before enforcement tightens is closing quickly."
About Clear Start Tax
Clear Start Tax is a national tax resolution firm that helps individuals and small business owners resolve back taxes, unfiled returns, and IRS collections. With a team of licensed professionals, the company specializes in navigating complex IRS programs and helping taxpayers find long-term solutions to their tax challenges.
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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:
https://www.accessnewswire.com/newsroom/en/business-and-professional-services/irs-targeting-e-commerce-sellers-in-2025-clear-start-tax-warns-s-1056367
