It's far worse.
Paypal is now reporting 1099 for transactions that are not F&F, in some states to where total annual transactions exceed $600. Far worse - they report 100% of the total as income to the IRS. So say you had $2,200 in total annual transactions. $2,200 gets reported. Say there was a $120 transaction in there, and $8 in Paypal fees. Paypal reports the full $120 on the 1099 as income. Paypal doesn't even remove the fees from the reporting. Gets better. Say your refund the $120 transaction. Paypal does not account for that in the reporting. They report gross deposits that are not F&F. Zero adjustments for anything.
Now ... if you bought a set of wheels for $1,800 and, two years later sell them for $600. Paypal reports $600 of course (and again, the $23 you paid in fees to paypal are left in there are income). So you have to build up a table which says you bought the wheels for $1,800, sold for $600, $23 in paypal fees, and hence -$600 on the 1099 reporting. Do various versions of all that accounting for every entry. That you have to submit to the IRS. I gave a simple example with goods sales. Services have their own version of expenses.
This is not about running a business, folks, though that can be one aspect. Be aware. The IRS would gladly stand next to your yard sale table and take a percentage of every sale of used item you sold, and have you defend the basis. Best part ... when you have $1,800 wheels you sell for 600, you don't get to claim the remaining $1,200 as expense or loss. That's only for businesses. For individuals the IRS is your Paypal Fair Weather Friend.