What happens when Tax info requested?

yankee · #1 10-28-2014

What happens when Tax info requested and do not supply an EIN?
I very specifically mean what happens to the funds in the account? Do they get frozen? Or is the account only limited to receiving more funds?

Lets assume account has had no issues of any kind.

I am considering overselling on a couple of accounts that I don't want to EIN while working on new accounts at the same time. Mostly I want to move a pile of $500.00 items and don't care if I cant use the accounts until next year at this point.

Thanks in advance for sharing your experiences!

fightworld1 · #2 10-28-2014

There are several options.

They're doing this because you're approaching the $20,000 limit. When you reach $20K, they are required, by law, to report this.

If you can get another PayPal going it is strongly advised. Otherwise, you'll have to put your SSN or EIN number there.

If you can go back and add all your paypal totals (including shipping) and keep it under $20K (even $19,999) you will not get 10-99 Form.

JamesNorth101 · #3 10-28-2014

Quote:

keep it under $20K (even $19,999) you will not get 10-99 Form.

This infomation is also requested on projected sales.

MM78 · #4 10-28-2014

Quote:

Originally Posted by fightworld1

If you can get another PayPal going it is strongly advised. Otherwise, you'll have to put your SSN or EIN number there.

Adding another Paypal account to an Ebay account that already has a Paypal is not advisable.

yankee · #5 10-28-2014

Quote:

Originally Posted by fightworld1

There are several options.

They're doing this because you're approaching the $20,000 limit. When you reach $20K, they are required, by law, to report this.

If you can get another PayPal going it is strongly advised. Otherwise, you'll have to put your SSN or EIN number there.

If you can go back and add all your paypal totals (including shipping) and keep it under $20K (even $19,999) you will not get 10-99 Form.

I am very familiar with 1099k etc...Thank you but I don't think you understand my question.

yankee · #6 10-28-2014

Maybe I am not clear.
What I am considering doing on some decent accounts this late in the year is say list 20-30 five day auctions today, all ending on Sunday and all will end at $500.00 or more per account. Each account will collect 15-18K in a single night.

These accounts are good standing stealth accounts with not a single issue. Ebay will not care but it for sure will trigger the tax request.

What happens when I do not supply an EIN?
Does paypal freeze the fund? Or simply limits the account until next years reset?

I am sure some of the long time sellers have had some experience with this.

JamesNorth101 · #7 10-28-2014

Is there a reason you do not want to supply an EIN?

If a request for any sort of tax infomation or documentation is received it will stay on the account until the request is fulfilled. A tax infomation request will not go away the next year.

yankee · #8 10-28-2014

Quote:

Originally Posted by JamesNorth101

Is there a reason you do not want to supply an EIN?

Yes. Don't want to open any more companies this year.

[quote=JamesNorth101;602831If a request for any sort of tax infomation or documentation is received it will stay on the account until the request is fulfilled. A tax infomation request will not go away the next year.[/quote]

I did not know this and that is OK too. Just don't want funds frozen.

solefoodbk · #9 10-28-2014

This may be a little off topic but do accounts made like 2 months 100% reset the start of 2015? I just started about 15-20 stealths around Sept. That would be AWESOME if I could get sales for this last quarter then have it reset! I might be able to get some TRS if they reset. Im more so referring to the (projected listings/listings) as I would most likely hit that limit before 20,000.

solefoodbk · #10 10-28-2014

accounts made like 2 months ago**

Ted123 · #11 10-28-2014

They do reset in the new year.

xxrange · #12 10-28-2014

If you get a tax limit cash out your paypal and change ip clean cookies and set up another paypal.

yankee · #13 10-28-2014

Quote:

Originally Posted by xxrange

If you get a tax limit cash out your paypal and change ip clean cookies and set up another paypal.

From experience?

xxrange · #14 10-28-2014

Quote:

Originally Posted by yankee

From experience?

Yes, i got hit with tax id limit waited for funds to clear on that paypal. Once available i sent the money out then cleaned the cookies and changed ip. New paypal is doing fine

yankee · #15 10-28-2014

Quote:

Originally Posted by xxrange

Yes, i got hit with tax id limit waited for funds to clear on that paypal. Once available i sent the money out

Just the regular 21- day hold? Or a limitation hold? such as the 30-45-90-180 day hold?

xxrange · #16 10-28-2014

Wait for the regular 21 day items must arrive hold to clear (4-5 days), then move the money. Also dont use old tax limited paypal to fund new one......

Klemantina · #17 10-29-2014

I'm trying to figure out the same problem,from what i understand there are 3 options.
1) Operate under 200-20k each year. It will reset on January? (is it true for all country's?)
2) Cash out and forget about your account.
3) Can't find enough information about this one, need to speak with an accountant and a lawyer to make sure whats the worst thing that can happen.

trosky · #18 10-29-2014

I wonder why isn't more people here having this issues with stealthy, 200 sales is nothing on the year, can easily be done in 2 months with low $ items. Do they have the same rules even if not close to 20K? Like around 6K for example?

rsot · #19 10-29-2014

Quote:

Originally Posted by trosky

I wonder why isn't more people here having this issues with stealthy, 200 sales is nothing on the year, can easily be done in 2 months with low $ items. Do they have the same rules even if not close to 20K? Like around 6K for example?

Paypal has been known to limit accounts based on PROJECTED RATE of sales so...can happen well before 200/20k

123 · #20 10-29-2014

From my experience paypal puts a soft limit on you anytime you near 18k most of the time atleast, and then i cant accept any more payment but then the next year it resets and the paypal is fine and good to go

GreenBean · #21 10-29-2014

Quote:

Originally Posted by fightworld1

There are several options.

They're doing this because you're approaching the $20,000 limit. When you reach $20K, they are required, by law, to report this.

If you can get another PayPal going it is strongly advised. Otherwise, you'll have to put your SSN or EIN number there.

If you can go back and add all your paypal totals (including shipping) and keep it under $20K (even $19,999) you will not get 10-99 Form.

Your info is inaccurate.

Another paypal can not be added wisely.

paypal are known to send out 1099 if they project sales are going to reach $20,000.

AND if you are wondering, my reply is based on my own personal experiences with USA accounts.

yankee · #22 10-29-2014

Quote:

Originally Posted by 123

From my experience paypal puts a soft limit on you anytime you near 18k most of the time atleast, and then i cant accept any more payment but then the next year it resets and the paypal is fine and good to go

Thanks 123!!