eBay, The Internal Revenue Service; Whatever

The latest budget proposal sent to Congress by the President includes a provision to require online re-selling sites like eBay and Amazon  to collect  and report information  about its customers income. Privacy watchdogs are concerned that this will require such sites to store enormous amounts of personal data- including, in many cases, social security numbers. 

The biggest concern with the proposed legislation is that it could lead to a vast collection of Social Security numbers and other personal data by a lot of different commercial entities on the Web, said Ari Schwartz, deputy director of the CDT. "The IRS is going after smaller businesses that cheat on their taxes," Schwartz said. In the process, though, millions of other Internet users who use such sites to sell personal property could also be affected.

Though the IRS wants income statements only in cases where businesses or individuals generate more than $5,000 from 100 separate transactions, most online sites are likely to collect personal data from everyone who uses their site, Schwartz said.

The IRS wants to turn eBay into a phishing site.