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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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1 posted on 08/16/2011 6:33:25 PM PDT by Nachum
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To: Jet Jaguar; NorwegianViking; ExTexasRedhead; HollyB; FromLori; EricTheRed_VocalMinority; ...

The list, ping

Let me know if you would like to be on or off the ping list

http://www.nachumlist.com/


2 posted on 08/16/2011 6:34:32 PM PDT by Nachum (The complete Obama list at www.nachumlist.com)
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To: Nachum

Another reason to change this Greedy Government that just can’t get enough money from the productive to give their slug voters.


3 posted on 08/16/2011 6:38:11 PM PDT by kittymyrib
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To: Nachum

I choose to limit who gets my SSN so I will not be using Paypal again.


4 posted on 08/16/2011 6:39:03 PM PDT by Ciexyz
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To: Nachum

This sounds like a Life Lock commercial.


5 posted on 08/16/2011 6:39:45 PM PDT by Mark (Don't argue with my posts. I typed while under sniper fire..)
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To: Nachum
The creeping totalitarianism of this administration infects the Internet.

Miserable fund-sucking leeches!

6 posted on 08/16/2011 6:40:47 PM PDT by Aevery_Freeman (Obama - the Half-Black Plague)
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To: Nachum

Sheesh, another privacy invasion.

PayPal will lose customers on this.


7 posted on 08/16/2011 6:43:03 PM PDT by TribalPrincess2U (democRATS—just doing al Qaeda ground work? Obama owns it all now.)
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To: Nachum

The “financial reform” bill was just as devastatingly evil as the health care bill. It slipped through because of the name.


8 posted on 08/16/2011 6:45:33 PM PDT by Ingtar (Together we go broke (from a Pookie18 post))
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To: Nachum

If true, no more pay pal.


9 posted on 08/16/2011 6:45:33 PM PDT by Eagle Eye (I am Joe the Hobbit.)
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To: Nachum
Due to new IRS rules, PayPal has started asking users

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]

10 posted on 08/16/2011 6:45:42 PM PDT by Lady Lucky
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To: Nachum

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.


11 posted on 08/16/2011 6:46:22 PM PDT by KoRn (Department of Homeland Security, Certified - "Right Wing Extremist")
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To: Ciexyz

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.


12 posted on 08/16/2011 6:47:33 PM PDT by ladyjane
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To: Nachum

Shove it, PayPal


13 posted on 08/16/2011 6:47:48 PM PDT by YHAOS (you betcha!)
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To: AdmSmith; AnonymousConservative; Berosus; bigheadfred; Bockscar; ColdOne; Convert from ECUSA; ...

Thanks 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.

14 posted on 08/16/2011 6:50:40 PM PDT by SunkenCiv (Yes, as a matter of fact, it is that time again -- https://secure.freerepublic.com/donate/)
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To: YHAOS

This means Ebay sellers will take a hit.

I think that’s the real target of the IRS.


15 posted on 08/16/2011 6:51:21 PM PDT by CondorFlight (I)
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To: Nachum

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.

http://online.wsj.com/article/SB121737220325394931.html.html


16 posted on 08/16/2011 6:52:42 PM PDT by Comparative Advantage
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To: Eagle Eye

Big Brother will be in your bedroom next.


17 posted on 08/16/2011 6:53:29 PM PDT by ExTexasRedhead
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To: Nachum
More greedy govt. thuggery demanding their "CUT"

The whole system is a farce!

18 posted on 08/16/2011 6:55:08 PM PDT by unixfox (Abolish Slavery, Repeal The 16th Amendment!)
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To: Nachum

IRS needs to be defunded and abolished. Start by NOT funding in the next CR (1 Oct).


19 posted on 08/16/2011 6:56:07 PM PDT by Bobby_Taxpayer (Don't tread on us...or you'll pay the price in the next election.)
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To: Nachum

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.


20 posted on 08/16/2011 6:56:20 PM PDT by CodeToad (Islam needs to be banned in the US and treated as a criminal enterprise.)
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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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To: ladyjane

>> “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.


41 posted on 08/16/2011 8:14:53 PM PDT by editor-surveyor (Going 'EGYPT' - 2012!)
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To: editor-surveyor
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.

42 posted on 08/16/2011 8:26:09 PM PDT by ladyjane
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To: radioone; rawcatslyentist; funfan; Skepolitic; roadcat; maine-iac7; JLLH; rolling_stone; boop; ...

Folks, this is not from paypal; it is a phishing email.

Just forward it to spoof@paypal.com so that they can catch all the participants in this scheme.


43 posted on 08/16/2011 8:29:35 PM PDT by editor-surveyor (Going 'EGYPT' - 2012!)
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To: ladyjane

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.


44 posted on 08/16/2011 8:32:47 PM PDT by editor-surveyor (Going 'EGYPT' - 2012!)
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To: editor-surveyor

So...not a real news story? (head down) OK, we’re sorry.


45 posted on 08/16/2011 8:36:55 PM PDT by CodeToad (Islam needs to be banned in the US and treated as a criminal enterprise.)
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To: editor-surveyor

Interesting.


46 posted on 08/16/2011 8:47:14 PM PDT by YHAOS (you betcha!)
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To: boop
I thought it was because of the bad checks that buyers were sending.

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.

47 posted on 08/16/2011 8:50:48 PM PDT by warsaw44
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To: editor-surveyor; Admin Moderator

If it’s fake, it might be helpful to add something like (Fake) in the headline.

Just a thought.


48 posted on 08/16/2011 8:51:10 PM PDT by RandallFlagg ("I can see 2012 from my house!" Jim Thompson, 7-16-2011)
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To: editor-surveyor
Last week I went to make a transfer from my paypal account to my bank account and was asked from the paypal site for my SS number as my sales exceeded 20,000.00.
49 posted on 08/16/2011 8:54:14 PM PDT by warsaw44
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To: ProudFossil; rolling_stone; butterdezillion; 4yearlurker; Aevery_Freeman; AlexW; Bobby_Taxpayer; ...
>> I agree totally, I wonder what would happen if you enter 999-99-9999.

No, using an SSN like 999-xx-xxxx is commonly done by universities or colleges such as Occidental College for foreign students.

Use 042-68-4425 instead. That one has been confirmed by Social Security Administration as having been never issued.

However, it would be best if you had a history of having lived in Connecticut in March 1977, because other numbers surrounding that one, were issued that month, and applicants who were 12 years old or more at that time had to apply there, in person.
50 posted on 08/16/2011 9:15:51 PM PDT by Future Useless Eater (Chicago politics = corrupted capitalism = takeover by COMMUNity-ISM)
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