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New IRS rules require PayPal to report sales information
http://thenextweb.com/insider/2011/08/16/new-irs-rules-require-paypal-to-report-sales-information/ ^ | 8/16/11

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 won’t be applicable, but you’ll still need to enter your tax ID just in case. Although, it’s important to note that the new law requires PayPal’s non-US subsidiaries to comply so any non-US account holders may need to certify their non-US status and address. If you don’t receive an email from PayPal asking for this, you’ll be prompted with the following message when you sign into your account.

(Excerpt) Read more at thenextweb.com ...


TOPICS: Business/Economy; News/Current Events
KEYWORDS: irs; new; paypal; rules; sourcetitlenoturl
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To: Comparative Advantage

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.


21 posted on 08/16/2011 7:01:27 PM PDT by wally_bert (It's sheer elegance in its simplicity! - The Middleman)
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To: Ciexyz
I choose to limit who gets my SSN so I will not be using Paypal again.

I agree totally, I wonder what would happen if you enter 999-99-9999.

22 posted on 08/16/2011 7:01:36 PM PDT by ProudFossil
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To: Nachum
I have been selling on Ebay and use Paypal. No way I near 20 thousand in sales a year. I have not been asked for any info such as SS#.
23 posted on 08/16/2011 7:01:44 PM PDT by 4yearlurker (I've been dipping into my jar full of Hope & Change just to buy gas!!)
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To: ExTexasRedhead

Is that a promise or threat? LOL


24 posted on 08/16/2011 7:05:30 PM PDT by Eagle Eye (I am Joe the Hobbit.)
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To: Nachum
So I have to put my tax ID or ssn in even though I will not be exceeding $20,000. However, they will probably be able to track my out of state purchases now right? So if I purchased something from another state and didn't put it down on my tax forms, they've got me. Uggg. No more PayPal!
25 posted on 08/16/2011 7:07:11 PM PDT by goodwithagun (My gun has killed fewer people than Ted Kennedy's car.)
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To: Nachum

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.


26 posted on 08/16/2011 7:12:40 PM PDT by AlexW
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To: TribalPrincess2U

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.


27 posted on 08/16/2011 7:16:03 PM PDT by JLLH
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To: AlexW

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.


28 posted on 08/16/2011 7:18:36 PM PDT by CondorFlight (I)
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To: JLLH

Ebay went “all PayPal” years ago. I thought it was because of the bad checks that buyers were sending.


29 posted on 08/16/2011 7:18:54 PM PDT by boop ("Let's just say they'll be satisfied with LESS"... Ming the Merciless)
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To: ProudFossil

http://www.indybay.org/newsitems/2006/06/19/18281332.php

try 000-00-0000


30 posted on 08/16/2011 7:21:42 PM PDT by rolling_stone
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To: boop

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.


31 posted on 08/16/2011 7:21:50 PM PDT by JLLH
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To: Nachum

“If you don’t 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.


32 posted on 08/16/2011 7:36:52 PM PDT by radioone (Don't let the media pick our nominee. "Palin 2012")
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To: KoRn
>"What if someone were to give Paypal a fake number?"

I know a fake one from Connecticut, that some bozos using !

33 posted on 08/16/2011 7:43:44 PM PDT by rawcatslyentist (It is necessary that a person be born of a father who is a citizen; ~Vattel's Law of Nations)
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To: radioone
Yes I don't think they will send an email but when you log into your paypal account you will be prompted to provide it
I think.
34 posted on 08/16/2011 7:45:49 PM PDT by funfan
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To: ExTexasRedhead

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.


35 posted on 08/16/2011 7:51:08 PM PDT by Skepolitic
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To: boop
Ebay went “all PayPal” years ago. I thought it was because of the bad checks that buyers were sending.

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.

36 posted on 08/16/2011 8:00:24 PM PDT by roadcat
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To: Nachum

the minute I get that prompt is when I have done my last transaction through PP


37 posted on 08/16/2011 8:07:35 PM PDT by maine-iac7 (ALWAYS WATCH THE OTHER HAND)
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To: Nachum

This is not legitimate!

Any email that you get saying that Paypal needs anything from you is a Phishing spree.

Just forward it to spoof@paypal.com - They will take care of it.


38 posted on 08/16/2011 8:09:15 PM PDT by editor-surveyor (Going 'EGYPT' - 2012!)
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To: Ciexyz

Its not from paypal.


39 posted on 08/16/2011 8:10:06 PM PDT by editor-surveyor (Going 'EGYPT' - 2012!)
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To: Mark

>> “This sounds like a Life Lock commercial.” <<

.
Close!

Its their life blood.

Phishing is how most identities get compromised.


40 posted on 08/16/2011 8:11:36 PM PDT by editor-surveyor (Going 'EGYPT' - 2012!)
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