Is it 200 and 20k or whichever comes first?
This seems to me..that a ss # will be required soon. And if u get limited? Pp keeps your money...isnt that what the 28% quote references too?
These will of course include PayPal. In order to help the IRS associate this data with the correct taxpayer, credit card companies, debit card networks and other electronic payment processors will begin asking their customers for Taxpayer Identification Numbers.
Tax IDs will typically take the form of Employer Identification Number or Social Security Number. If an accurate number is not provided, the companies will be required to withhold a whopping 28 percent of receipts. "The limited burden of this proposal will fall on the merchant card servicing companies (which already have the information to be reported), and not on the businesses who take credit cards as a form of payment,
" Treasury Department spokesperson Andrew DeSouze tells Auctiva. "From the sellers' point of view, this provision will help them to be more compliant by providing an annual statement of their credit card reimbursements so they can have complete information to file their tax returns."
Not all eBay sellers will be affected by the new requirement, however. Obviously, the dwindling minority who only do business by cash, check and/or money order will experience no impact. But small sellers may also avoid the extra scrutiny, given the law's minimum threshold: Only payees with more than $20,000 in processed receipts and more than 200 transactions for the year must be reported.
Last edited by HurricaneHuntr; 11-18-2010 at 11:29 AM.
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