Incorrect EIN added

[ghackett5]

My paypal account exceeded 20,000 +200 for the year But I think I added the ein incorrectly, (the account also got a limitation asking for photo ID etc).
Should I bother correcting it on the current paypal or can I start a new paypal with that unused ein.

[phaz0rz]

If you exceeded both thresholds, Paypal is going to issue a 1099 for the EIN you provided. You're going to want to make sure that EIN is correct or you could have major problems at tax time.

Just my $.02.

[ghackett5]

Is it paypal trouble or irs trouble. As far as paypal that account is already limited, but any other problem I don't need.
So do you think I should add my correct EIN to that paypal now that it has definitely gone over the limits 20k+200

[phaz0rz]

Originally Posted by ghackett5

Is it paypal trouble or irs trouble. As far as paypal that account is already limited, but any other problem I don't need.
So do you think I should add my correct EIN to that paypal now that it has definitely gone over the limits 20k+200

If the account is already toast you might as well just add your SSN/ITIN (assuming you have one) rather than burning an EIN. That way the 1099k will have a valid Tax ID for you.

I honestly can't say what would happen if Paypal sends a 1099 to the IRS with an invalid Tax ID. The IRS's reaction would probably depend on the amount of income being fraudulently reported.

[ghackett5]

But the name is stealth and will not match my SS info.
Also my EIN is sole proprietor so will that work on that stealth?

[N@Kes]

If the business name of Paypal and your EIN will be the same, then you can add.
And SSN must match with real name in paypal