Yep. This is how I explain it:

Say you sell something on ebay for $300, and you withdraw the $300 to Paypal. Every ebay transaction for the year is then required to be reported.

If you then withdraw that $300 deposit from Paypal, every Paypal transaction is reported. $300 in plus $300 out = $600.

If you then cash that $300 deposit out of your bank account, every transaction on that bank account is reported.

Yep. This is how I explain it:

Say you sell something on ebay for $300, and you withdraw the $300 to Paypal. Every ebay transaction for the year is then required to be reported.

If you then withdraw that $300 deposit from Paypal, every Paypal transaction is reported.

If you then cash that $300 deposit out of your bank account, every transaction on that bank account is reported.