THE IRS HAS TAKEN MY TRANSACTIONS VIA PAYPAL AND IDENTIFIED THEM AS TAXABLE INCOME

This country is broke . when are you guys going to realize that. were seeing massive inflation right now because its the only way they can handle the debt problem , its not transitory like the secretary of the debt said , you haven't seen nothing yet , this is not the forum to talk politics or economics but since you brought it up here we are. Buy your HIFI gear now and save because tomorrow you'll pay double. Biden is your man he will fix everything he's so great !! I cant wait for him to keel over on live tv im going to get the popcorn out. Just enrolled my child into private school cause of the absolute BS there teaching these children. The masses think everything is normal because they dont know any better , things are NOT ok wake up you idiots. The IRS needs money and they will be cracking the whip your just getting a little taste of what's to come. 

The irs can only see the transaction that was reported to them. If this is for the sale or equipment you can apply the basis rule. Lets say you bought a piece of equipment for $10,000 and sold it for $8,000. The irs sees the $8000 sale not the purchase of $10,000. All you need to do is report said sale as a $2000 loss and produce the receipt of original purchase. If you have also sold equipment where you made money from your original purchase you will be able to use the loss from other sales to offset this gain. What if you don’t have receipts? Just report what you think it was and best rule with the irs ( which is the criminal collection division of the dc cartel) report at least a small gain say $250 and pay the tax on that amount. Just make sure the amount you report does not move you into the next bracket and impact your cap gains on investments or you social security taxation.

@nickaboy1

you are just touching the tip of the tip of the tip of this iceberg. Right on brother my children are in private school too!

PayPal also sent you a 1099 as the law requires them to if you have over 200 transactions and over $20,000 of proceeds. Both have to be true. PayPal does not mail the 1099, but you need to look online. Look under activities - statements - tax documents. If none are there, then PayPal did not generate one and the IRS did not receive one from PayPal. If the IRS has a 1099 from PayPal and your online account does not show one, then the IRS has asked for it outside the normal guidelines. 
The IRS is going after bigger fish as they don’t have the resources to go after 4 small transactions. I am sure your 1billion dollar business is the sole reason this is happening. The IRS may have asked PayPal for it as they are looking closer a folks they deem big fish.  
Just my thoughts based on what you have shared.  

Could the IRS be broke because some people bought lobbyists to write laws that were passed by legislators they also bought to exempt them from paying taxes?  Possibly these people were billionaires, but of course that is not true.

ALL billionaires are HAPPY to pay their fair share of taxes and do not need to buy legislators to pass laws that exempt them from paying taxes.  Also millionaires, of course.

This is also true for large corporations, who happily pay ALL their fair share of taxes every year.

None of these billionaires or corporations stash money overseas or incorporate in Ireland or have secret bank accounts or EVER avoid tax laws.

American billionaires and corporations and even politicians are scrupulously honest and always pay their full share of income taxes just like all of us do.  They also NEVER lie about anything.

Some of you people are supposed to be educated and American citizens who believe in our country and its laws.  Could it be that this is not true?

Naw!  Everyone on here is honest and a true, law-abiding American I am sure.  All the crooks and cheaters have certainly been banned by now, right?