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| alphaversa | 01-29-2009 02:21 PM |
Paypal getting tougher on SSN with limitations
I call in at least 2-3 times per week for limitations. I spoke with one rep at Paypal who told me that sometime this year they will be requiring SSN for all Paypal accounts. He said some piece of legislation has passed that is requiring Paypal to do this. Does anyone know what legislation he is referring to? I was limited on one of my accounts this past weekend. The guy told me he had to get my social security number and there was no way around it. I went round and round with him on the phone. Finally, I asked him to transfer me to the legal department and asked who their person for purpose of service was. He told me he was putting me on hold while he went to retrieve this information. After 10 minutes, he picks up the phone and tells me that his bosses told him that he can remove the limitation. They must be getting sued a lot for stuff like this. Has anyone tried suing them in small claims court for an account limitation? I would be interested in hearing the results. |
| aspkin | 01-29-2009 02:44 PM |
Taken from the PayPal blog: Quote:
Hi, I’m Ken Swab, senior federal government relations officer at PayPal. You might have heard that Congress recently passed the Housing and Economic Recovery Act of 2008, a major housing bill that the President signed into law on July 30. The bill contains a provision impacting PayPal and our merchant customers, so I wanted to explain the requirements and what they mean for some of you. Under the legislation, PayPal will be required to report to the IRS the total payment volume received by PayPal customers in the U.S. who:
- receive more than $20,000 in payment volume in a single year; and
- receive more than 200 payments in a single year.
This legislation applies to all payment providers including PayPal and takes effect in 2011, so the first reports will go to the IRS in January 2012. Our goal when the legislation takes effect is to make it easy for PayPal merchants who fall under the provision to report their taxable incomes.
I want to emphasize that this new law affects a small percentage of PayPal customers. Early versions of the legislation would have required PayPal to report total payment volume of many more customers, including those who received as little as $600 per year. We worked hard to educate Congress about the unique features of PayPal and the unique nature of our customer base. We also educated lawmakers about the many PayPal customers who receive money from others for reasons not related to operating a business.
It was important that this legislation didn’t burden entrepreneurs with new tax compliance demands or inappropriately raise reporting requirements on those who are not merchants
With help from many of you, we conveyed these views to congressional leaders. And as a result of that dialogue, the legislation doesn’t overreach or negatively impact individual Internet users, the growth of small businesses, or the entrepreneurial spirit that makes the Internet so powerful.
Thank you, to the many PayPal and eBay customers who took the time to write to your U.S. Senators about this legislation. Your voices encouraged Congress to reject the initial overly-burdensome proposal and to limit the impact of the final version of this bill.
UPDATE (8/18/08): Thanks for all of your great questions! I have been responding to as many of them as I can. However, because the legislation has just recently been passed and we do not know exactly how the IRS will implement the requirements, we do not yet know the answers to some of the questions that have been posed. Rest assured that as more details about the requirements of this law become available, will provide updates as necessary.
In response to some of the questions below about business expenses (such as shipping, insurance, etc.), it is very important to point out that the figure PayPal will report to the IRS is only the total payment volume received by your business. Because of business expenses and other reasons, this figure may not match the yearly revenue or income figures that you report to the IRS in your tax forms. We encourage all of you to consult with your tax advisor when this law takes effect to ensure that you are complying with federal tax laws.
|
hxxps://www.thepaypalblog.com/2008/08/proposed-irs-reporting-requirements-become-law/ |
| JamesYaBaoy | 01-29-2009 04:15 PM |
Which means:
ALL PayPal accounts will be asked for SSN sometime soon.Elminating stealth accounts |
| aspkin | 01-29-2009 04:22 PM |
There are other options. And we have two years to master those options.
No worries. |
| John14789 | 01-29-2009 07:10 PM |
So even if you create as many paypal accounts now you'd still have to provide ssn in 2011? |
| aspkin | 01-29-2009 07:13 PM |
I was thinking the same thing John, but who knows.
Start building a massive holding of PayPal accounts for us John. :) |
| John14789 | 01-29-2009 07:18 PM |
Bro hell ya I'll start on this ASAP! If I can last on paypal w/o ssn I'll create thirty or so accounts til 2011. I think I'll be good with about a thousand or ebay/paypal accounts.
If its necessary it is what we must do. Lets see what modee has to say about this. He probably knows about our doubt. |
| GreenBean | 01-29-2009 07:18 PM |
Be very imaginative here,guys, VERY;) |
| SevnSins | 01-29-2009 11:51 PM |
Thanks for the post. I know what I'll be doing for the next month.
Although; we should be more focused on merchant accounts, rather than trying to keep feeding GayPal more money. |
| alphaversa | 01-30-2009 12:16 AM |
I wonder what the protocol will be. Will you just get hit with a "credit check" once you meet these benchmarks? I have over 150 eBay/Paypal accounts. I s'pose I will make more. |
| importracer150 | 01-30-2009 10:15 AM |
Ebay and Paypal are tighting up with all this s.s garbage.
Guys try ioffer, I sold many electronics on there last year using
google checkout and western union. U can transfer your ebay ratings
instantly to ioffer also. Ioffer is the 2nd best auction site. |
| divine422 | 02-02-2009 02:36 PM |
You can all just move to Canada :D |
| wookster | 02-02-2009 05:45 PM |
Gotta love Canada eh? :) |
| TMiles | 02-02-2009 07:01 PM |
What about a Federal Tax ID number. Can you not get many Federal Tax ID numbers based on many different business names.....
Most business in the US use Federal Tax IDs, not social security numbers.
Also looks like Merchant Accounts will take on a bigger role... |
| fastfire667 | 02-03-2009 04:38 PM |
Quote:
Originally Posted by TMiles2564
(Post 74524)
What about a Federal Tax ID number. Can you not get many Federal Tax ID numbers based on many different business names.....
Most business in the US use Federal Tax IDs, not social security numbers.
Also looks like Merchant Accounts will take on a bigger role...
| I think I remember reading something about how when you register s business and get a Federal Tax ID Number, you still have to provide your personal SS in the process and that Paypal has a way of verifying whose SS number is linked to the Tax ID number. |
| fastfire667 | 02-03-2009 04:40 PM |
Quote:
Originally Posted by divine422
(Post 74493)
You can all just move to Canada :D
| I cosign! I plan on packing my bags and making the move sometime within the next couple of weeks ;) :D
I have a feeling that we will be seeing a LOT more Canadian flags being displayed on this forum over the coming months/years... |
| SevnSins | 02-03-2009 06:07 PM |
Quote:
Originally Posted by fastfire667
(Post 74629)
I think I remember reading something about how when you register s business and get a Federal Tax ID Number, you still have to provide your personal SS in the process and that Paypal has a way of verifying whose SS number is linked to the Tax ID number.
| Unless you are signing up for a eBay merchant account, how would they have access to that info? The only way a merchant provider would share that info is by court order, or else they can be sued themselves. Merchant accounts are the future of eBay, so get with the program and set one up. |
Quote:
Originally Posted by aspkin
(Post 74181)
Taken from the PayPal blog:
hxxps://www.thepaypalblog.com/2008/08/proposed-irs-reporting-requirements-become-law/
| I wonder if both requirements need to be in place at the same time before they ask for SS#? Cause you can have only 1 transaction worth 20K or more...like selling a car? Anyone? |
| hitch | 05-03-2009 07:57 PM |
Well, if you're selling a lot of Vero this may be a problem.
However, if you're selling "safe" stuff, it can be fairly easy tog et aroudn this issue.
You can get a EIN number online, so sign up with a paypal business account and you should be good to go.
I have 2 EIN's one for each of my companies. I don't have a apaypal account registered with them, but i plan too in the near future.
This won't hide you from the tax implications though, you'll have to file taxes on the income still...:rant: |
| oompaloompa | 05-04-2009 07:16 AM |
I wouldnt laugh if I were canada they will come in to line with bigger sites too, ebay know the smaller sites are loopholes and will close them.
the blog states $20000 per year or 200 transactions, with multiple accounts you need never cross that threshold, right? so whats the problem, at the 366th day you go on tho your next years receiving limit...am I right? |
| cortex | 05-04-2009 10:53 AM |
*original post deleted* |
| mmac900 | 05-04-2009 10:54 AM |
Quote:
Originally Posted by oompaloompa
(Post 85812)
I wouldnt laugh if I were canada they will come in to line with bigger sites too, ebay know the smaller sites are loopholes and will close them.
the blog states $20000 per year or 200 transactions, with multiple accounts you need never cross that threshold, right? so whats the problem, at the 366th day you go on tho your next years receiving limit...am I right?
| That's exactly what I think. No one ever said paypal will require all accounts to provide SSN, and people are just panicking. |
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