Welcome to WebmasterWorld Guest from 126.96.36.199
You may be incorrect about your situation. The only thing I can find: 1) They will hold all money until the proper form has been completed with them. 2) They are not responsible for anything thing tax related (except for the form), it is completely in the hands of the Publisher to know their specifc tax laws.
I'm guessing I'll get it as a W-2 next year and be able to file for a return.
Interesting, but it may be wise to talk with a tax accountant before relying on Google to pay our taxes for us.
IRS May Tax Your eBay Sales
Do you have to report the money you make from hawking stuff on eBay? It appears to depend on whether you're running a business or just cleaning out the attic, but the IRS says all income can be taxed.