Small businesses that use online auction sites such as eBay could be affected by a new IRS reporting rule that President George W. Bush is expected to sign soon. The rule will require PayPal and other online payment processors to report annual gross receipts to the IRS. Merchants who do less than $10,000 gross or fewer than 200 transactions will be exempt. Reporting will be delayed until 2011 to give banks and merchants time to shore up procedures.

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