It could be phishing or a scam, but Berigan said his friend actually called PayPal.
I do know that IRS has been cracking down on EBAY sellers and other online sellers/resellers of that type, for unreported income. There has been some reporting on this. I recall an article in which they actually caught one of their own employees for not reporting income from EBAY sales. I don't recall the threshold; it's hinted at in the material Berigan presented early in the thread, but they probably do take in duration of sales activity, number of sales, amounts, etc. Basically, IRS is looking for tax evasion. Bottom line: if you are making hundreds of sales a year, look out. Don't worry though. If Berigan's pal, Michele B gets in, she'll turn off the lights at IRS; that is, after she turns off the lights at EPA, Education, etc etc. (sorry Berigan, just had to throw that in).