Hi Bob,

I think the first part of your message is going to scare a lot of people, but fortunately the actual verbage you quoted does point out a key fact...

" if you(i) receive more than $20,000, and (ii) receive more than 200 payments, in that calendar year."

...the key word being and and not or. While 200 payments may be not be many for small sellers, if they're bringing in over $20k a year through PayPal, it's very likely they should be filing a Schedule C in their returns You could make a few sales during a year, including a $30k car, and not get the 1099. You could make 1,999 $10 sales and not get the 1099.

Jim