IRS relies on a lot of dual source reporting (K1, 1099 of all types, etc.) to create automatically (i.e., algorithmically) generated penalties and interest for information which is not reported in the 1040/1120 of the recipient.
If you're not going to include the income that's on the 1099K in your 1040 as "gross income" and your Virginia equivalent personal tax return, I would almost guarantee that you'll receive a penalties and interest letter from IRS (and/or Virginia) when they match your return against e.g., your W2 from your employer and any other 1099s/K1s etc. that they have received from your banks, any partnerships you own etc.
I'm not a tax professional but if you know one and/or use one to prepare your returns, maybe worth including this in your questions on how to manage - particularly if you want to e.g., demonstrate what your basis is in whatever cards you've sold and why you're at a "loss".
I'd venture that paying the marginal income tax on the 1099K is likely much less pain and hassle than the penalties and interest/audit (though highly, highly unlikely to be audited on $150 USD discrepancy).
Hope that's helpful!
As an aside, I've thought seriously about forming an LLC and opening a tax exempt account with GTS/Southern Hobby but you generally have state "Use" taxes for any product that you don't resell so didn't end up seeming worth it for the marginal savings between LCS prices and distributor prices, particularly if you're not buying all products in scale in which case you're definitely getting allocated on the better products.
Also, UD requires GTS/Southern to receive an application with photos/location etc. for all people who try to buy UD products to help support the CDDs, so unless you're buying Topps/Panini/other products, you won't be able to open an account anyway...
