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 ...
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 email@example.com - 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.
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