Skip to comments.New IRS rules require PayPal to report sales information
Posted on 08/16/2011 6:33:22 PM PDT by Nachum
Due to new IRS rules, PayPal has started asking users to provide their tax ID number, which is either your Social Security number, Individual Tax Identification Number or your Employer Identification Number. PayPal says it will use your tax ID number to send tax Form 1099-K to you and the IRS when the payments you receive exceed both of these milestones in a calendar year:
$20,000 in gross payment volume for goods and services 200 payments
So for most occasional PayPal users, this change wont be applicable, but youll still need to enter your tax ID just in case. Although, its important to note that the new law requires PayPals non-US subsidiaries to comply so any non-US account holders may need to certify their non-US status and address. If you dont receive an email from PayPal asking for this, youll be prompted with the following message when you sign into your account.
(Excerpt) Read more at thenextweb.com ...
The list, ping
Let me know if you would like to be on or off the ping list
Another reason to change this Greedy Government that just can’t get enough money from the productive to give their slug voters.
I choose to limit who gets my SSN so I will not be using Paypal again.
This sounds like a Life Lock commercial.
Miserable fund-sucking leeches!
Sheesh, another privacy invasion.
PayPal will lose customers on this.
The “financial reform” bill was just as devastatingly evil as the health care bill. It slipped through because of the name.
If true, no more pay pal.
Started?? Paypal required my SSN ten years ago. Not for that reason but for a dozen others, I think they and all their senior management should be behind bars. Haven't dealt with them in years but have kept an eye on them. Too many offenses to list. Check out an anti-paypal site and read just a sample.
... Criminals ... [Edited for vehement profanity]
What if someone were to give Paypal a fake number? If they don’t really know who you are in the first place, who would know the wiser?
Then again, I might be naive regarding how Paypal works.
I will never use paypal.
I did use them a couple of times and then - out of the blue - they demanded to have my banking information. That was in addition to my credit card number.
No way would I give my bank information or my SS# to them.
Shove it, PayPal
Due to new IRS rules, PayPal has started asking users to provide their tax ID number, which is either your Social Security number, Individual Tax Identification Number or your Employer Identification Number.
This means Ebay sellers will take a hit.
I think that’s the real target of the IRS.
If you regularly sell items on online auction sites, you may find yourself on the Internal Revenue Service’s radar. Recent legislation aims to help the IRS collect more taxes from online enterprises, many of which either don’t know about their tax obligations or are ignoring them, according to the agency.
The provision, part of the housing rescue package that President George W. Bush is expected to sign within days, will require PayPal and other processors of online payments to report annual gross receipts to the IRS for all but the smallest online merchants.
Big Brother will be in your bedroom next.
The whole system is a farce!
IRS needs to be defunded and abolished. Start by NOT funding in the next CR (1 Oct).
Bye-byte PayPal. I don’t meet those definitions but I don’t want any screwups whereby the next thing you know I’m talking to the IRS because PayPal goofed.
I quit Ebay a few years ago. At one time I did fairly well peddling heavy equipment, parts, and salvage cars for relatives. Ebay went all restrictive and super strict on ads coupled with the bigger fees. Once in a while I will look around but haven’t bought anything in ages.
Paypal for my use is to make routine small contributions to some animal rescue charities including one I found out on here a few years back. I have also done a donation to FR.
I agree totally, I wonder what would happen if you enter 999-99-9999.
Is that a promise or threat? LOL
Another of many good reasons why I left the USA.
I made a lot of sales on Ebay and received most payments through PayPal.
Every day there seems to be more destruction of freedom
by the Marxist government.
That and their requirement that you link your bank account to be “verified” if you want to continue using them after a certain number of payments. I no longer use PayPal for this reason.
Paypal is the most convenient way to pay for purchase both in the US and overseas (as they convert the funds to foreign currency for you).
But if they think someone can put a social security number online and have it be safe, they’re sadly mistaken.
Requiring that will just be the end of Paypal—a useful service; and instead we will go back to sending checks by snail mail, waiting for them to arrive and clear, and then getting our purchases.
This won’t accomplish anything but the death of a useful service.
Ebay went “all PayPal” years ago. I thought it was because of the bad checks that buyers were sending.
I used to think the bank account link was completely optional. Not so, and many have complained and refuse to use PayPal as a reason. I miss Ebay a little, but not enough to give them that kind of info. — and with the new “IRS” garbage that just cinches the deal for me. Nail in the coffin. I predict Ebay will take a huge hit from this.
“If you dont receive an email from PayPal asking for this”
And, if you do receive an email from them, for goodness sake do not reply with your SSN.
Also, verify this IRS info is correct.
I know a fake one from Connecticut, that some bozos using !
Hmmm ... young women frequently share their companionship and perhaps other favors with young (and not-so-young) men in what is apparently an exchange for meals, entertainment, and transportation. This certainly should be a taxable transaction.
PayPal also protects buyers from fraudulent sellers. This year I paid $600 for an item and got the run-around from the fraudulent seller (no item and promises of a refund that never came). EBay promptly refunded my money via PayPal after I filed a claim with eBay. Long ago, I used to pay via money order and checks; I doubt I would have got money back if paid by check.
Regardless, I doubt I would sell $20G worth of goods. If the IRS wants tax money from me, I will sell off the grid and stop using eBay.
the minute I get that prompt is when I have done my last transaction through PP
This is not legitimate!
Any email that you get saying that Paypal needs anything from you is a Phishing spree.
Just forward it to firstname.lastname@example.org - They will take care of it.
Its not from paypal.
>> “This sounds like a Life Lock commercial.” <<
Its their life blood.
Phishing is how most identities get compromised.
>> “I did use them a couple of times and then - out of the blue - they demanded to have my banking information. That was in addition to my credit card number.” <<
They do not ask that anymore. You can use them all you want now and only have to give a valid credit card number.
Well then paypal is lying to me.
According to paypal, and they may be lying, you can sign up for paypal with just a credit card, but it's only for a limited time. Then you must become verified and give them access to your bank information or they will no longer process your transactions.
I do not trust paypal. No way would I give them access to any bank account.
Folks, this is not from paypal; it is a phishing email.
Just forward it to email@example.com so that they can catch all the participants in this scheme.
I use paypal heavily and I am not “verified.”
They quit asking that several years ago because so many people had misgivings. The only way you need verification now if if you are receiving a lot of money from sales.
So...not a real news story? (head down) OK, we’re sorry.
No, not at all. I have been a seller on ebay since 1998. Prior to paypal everyone used checks, sent cash or money orders. Maybe two checks bounced in all the thousands I received. The buyers were mortified when notified and always sent a replacement check which a higher amount than owed.
Ebays total BS reason for requiring paypal infuriated me - still does.
Nothing was ever ‘ lost in the mail ‘ either and I mean nothing. Now, with paypal required and proof always needed for each shipment ( on-line proof ) you would be amazed how many packages just vanish into thin air. A simple “ the package didn't arrive “ email to paypal and they begin the process of freezing the money in your account and eventually giving it to the buyer.
Now ebay is charging sellers a fee on our shipping costs. They claim it is to make sure we sellers don't overcharge people on postage. Another BS reason from ebay - they want us to pick up the postage for the buyer.
Ebay is just a total PIA at this point.
If it’s fake, it might be helpful to add something like (Fake) in the headline.
Just a thought.