...... My original point was that MOST ebayers don't do that .....

Archie, I'm curious how you know what MOST eBay sellers do regarding their taxable sales. I personally don't have any idea of my fellow sellers file a Schedule C or not, and wouldn't think to ask them.

I pay every penny of Federal tax I owe, but do not collect or pay Arizona State sales taxes, since 99% of my sales are interstate, and I don't sell enough within Arizona to need to file.