A lot will depend on how this is implemented.
However, when PayPal receives an SSN or EIN for reporting purposes, PayPal MUST run what they get across the IRS database. The IRS records must match what you give to PayPal.
BUT - THE IRS CANNOT, BY LAW, GIVE OUT ANY INFORMATION ABOUT AN SSN/EIN. So, they simply report "match" or "no match" back to PayPal. If there is no match, then PayPal would contact you to clear up any discrepancy.
PayPal CAN, however, take it a step further if they want to. They can require an SSN, even on a business account. They would still REPORT under the EIN, but they CAN use an SSN for verification purposes.
Best advice is not to panic. There will be a workaround. It just depends on how this gets implemented.
Last edited by jeffweico; 05-15-2011 at 12:41 AM.
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