Account Hit over 200

[SadSuspended]

One of my accounts appear to have sold over 200 items. I counted each sale I made one at a time and my total was 238. I checked paypal to see if I there was a 2015 tax statement and I don't have one. What is going on?

[GreenBean]

Nothing... You are likely not hitting the tax thresholds....

200 items and/or $20,000.

If your projected sales do not go near $20,000, then paypal does nothing.

[SadSuspended]

So by now if Paypal was going to give me the 1099 I should have received it already, correct? There is no delay?

[vogeltron]

Originally Posted by GreenBean

If your projected sales do not go near $20,000, then paypal does nothing.

USA accounts if you close and don't have a Tax ID uploaded then you will get warnings at these levels and probably limited from receiving funds or closing the account for the year if no Tax Id is uploaded. Unless PayPal has been given guidance to backtrack to like 2011 where it was get close to 20k and 200+ transactions I haven't seen it yet. Back then I had some 1000 transaction Paypals way below the 20k. Now if I sell 160 items and the total is 5k I get pestered by PayPal and have to sit down the account for the rest of the year and this is usually like Oct/Nov. So no way I am hitting the 20k.

[rsot]

Originally Posted by SadSuspended

So by now if Paypal was going to give me the 1099 I should have received it already, correct? There is no delay?

When was account suspended?

[GreenBean]

Originally Posted by SadSuspended

One of my accounts appear to have sold over 200 items. I counted each sale I made one at a time and my total was 238. I checked paypal to see if I there was a 2015 tax statement and I don't have one. What is going on?

Go back to your paypal and count the total of your transactions.

You should know that in any case.

[phaz0rz]

Originally Posted by SadSuspended

So by now if Paypal was going to give me the 1099 I should have received it already, correct? There is no delay?

If you're worried about the 200 item threshold, have you even supplied a tax ID to Paypal? Most people concerned about the 200 item rule are using accounts without a Tax ID attached.

Assuming that you have supplied a tax ID, you would not be issued a 1099 unless your 2015 sales were 200+ items AND $20,000+.

It's also worth noting that if you ever supply the same tax ID to 2 accounts (not advisable, but not impossible) and you pass 200/$20,000 on one Paypal but not the other, you will still be issued a 1099 for both accounts.

[slokor]

The more important part is the amount in sales. If you have not hit the $20,000 mark you wont be getting the 1099 form. The IRS are behind the whole thing which is the main reason the dollar value is the more important factor.

[haist82]

Originally Posted by vogeltron

USA accounts if you close and don't have a Tax ID uploaded then you will get warnings at these levels and probably limited from receiving funds or closing the account for the year if no Tax Id is uploaded. Unless PayPal has been given guidance to backtrack to like 2011 where it was get close to 20k and 200+ transactions I haven't seen it yet. Back then I had some 1000 transaction Paypals way below the 20k. Now if I sell 160 items and the total is 5k I get pestered by PayPal and have to sit down the account for the rest of the year and this is usually like Oct/Nov. So no way I am hitting the 20k.

Quick question.
They actually give you warning and don't limit your account if you stop selling?
Thanks.

[yankee]

Originally Posted by haist82

Quick question.
They actually give you warning and don't limit your account if you stop selling?
Thanks.

They first request it. Then another request if you sell slowly. You get limited at either 200 OR 20k

You can easily pass one or the other if selling very fast.

[yankee]

Sad,
What is the total dollar sales for the year?

Also, why does it matter if you get a 1099-k or not?

You are supposed to pay taxes on your income. The 1099-k does not reflect this at all in any way. No place on any tax form does this total go etc..

[vogeltron]

Originally Posted by yankee

Sad,
What is the total dollar sales for the year?

Also, why does it matter if you get a 1099-k or not?

You are supposed to pay taxes on your income. The 1099-k does not reflect this at all in any way. No place on any tax form does this total go etc..

Some people register EIN with phake info for PayPal. That means if you get a 1099 with John Doe as registered user that gets filed with IRS for any sole proprietorship accounts. So with regards to FinCEN and other government agencies; regardless of claiming income it still constitutes fraud.

[yankee]

Originally Posted by vogeltron

Some people register EIN with phake info for PayPal. That means if you get a 1099 with John Doe as registered user that gets filed with IRS for any sole proprietorship accounts. So with regards to FinCEN and other government agencies; regardless of claiming income it still constitutes fraud.

That is very interesting.