Need help with Paypal and the IRS

[green peace]

Hello, I am an american citizen and am using Paypal for most of my gaming transactions. I'm still quite un-sure on how things work with the IRS and Paypal.

From my understanding, if you do 200 transactions & have received 20k USD or more in a year, you have to report it and pay taxes. Is RWT illegal? Can i pay taxes on revenues made from RWT? How do i ensure my 20k+ usd is safe?

When i was using western union, i asked the guy at the counter and he said that selling game money falls under "online game of chance" which is illegal in the U.S. and he said that any payments for that through western union would be illegal. Do you need to obtain some sort of gambling liscense or something?

ALSO, im considering moving out of country and im guessing this might help, any ideas on how to do this in say southeast asia?

Thanks for your time guys. I appreciate any response.

 

[Frugal]

Its not illegal if there is sufficient proof that the item being sold was received and paid for and no fraudulent activity is going on. Paypal does not allow the selling of virtual items so that might be a problem for you in the long run. Also the things being sold must not be illegal. Not sure if this helps but yep.