automatic problem once 200 auctions sold

rcdrivertim · #1 10-22-2012

Let me be clear, IF YOU USE PAYPAL. I have learned or realized, so to say, that when everyone of peoples "accounts" hit the 200 auction sold mark, there is an automatic request from Paypal for the SS# or EIN and so on. Since that is the case, every account that has been bought or created will have to be burned after selling 200 auctions or open only accounts with merchant information.

Back to the "Guide" to see how to do the merchant account. I believe not accepting the hated PP will lower sales but, I have been wrong once before.

Gamefreak · #2 10-23-2012

is this new to you? all sites are requiring tax info

accutinting · #3 10-23-2012

Well you have to meet both of the following criteria, the 200 sales and the 20k in sales.
I have seen them ask for info at 160 sales and 5k in sales but really no issues and the issues are pretty easy to solve but again depending depending on your business model.
Also Im pretty sure that all payment processors are now required in the USA to report you as a 1099 not just paypal.

its a new internet sales law required by the IRS and paypal is required to enforce like everyone else

accutinting · #4 10-23-2012

Here is some factual information:

"Starting in 2011, Internal Revenue Code (IRC) Section 6050W states that all US payment processors, including PayPal, are required by the Internal Revenue Service (IRS) to provide information to the IRS about certain customers who receive payments for the sale of goods or services through PayPal. These new rules apply to sellers who receive over $20,000 in gross payment volume AND over 200 separate payments in a calendar year"

AmazonStealth · #5 10-23-2012

Quote:

Originally Posted by accutinting

Well you have to meet both of the following criteria, the 200 sales and the 20k in sales. I have seen them ask for info at 160 sales and 5k in sales but really no issues and the issues are pretty easy to solve but again depending depending on your business model. Also Im pretty sure that all payment processors are now required in the USA to report you as a 1099 not just paypal. its a new internet sales law required by the IRS and paypal is required to enforce like everyone else

No you are wrong.

GreenBean · #6 10-23-2012

What is the origin of all this inaccuracy?

Please confirm facts and do not make such errors regarding the topic.

AmazonStealth · #7 10-23-2012

Quote:

Originally Posted by GreenBean™

What is the origin of all this inaccuracy?

Please confirm facts and do not make such errors regarding the topic.

Is this towards me? I am just stating that 20k or 20,000 is a general limit. They can hit you whenever they want, and most likely will hit you sooner if you are on fast pace of reaching this limit much quicker. But to be technical, this is for tax reasons, so in the end it all need to be reported to the tax man, so you might as well give your ssn/ein right away from a long term solution.

Run and gun accounts are done for. Although LoopHole probably will disagree, they are no longer a secure method of income.

rsot · #8 10-23-2012

When you are dealing with high tax numbers, best to get professional tax advice.

GreenBean · #9 10-23-2012

Quote:

Originally Posted by AmazonStealth

Is this towards me? I am just stating that 20k or 20,000 is a general limit. They can hit you whenever they want, and most likely will hit you sooner if you are on fast pace of reaching this limit much quicker. But to be technical, this is for tax reasons, so in the end it all need to be reported to the tax man, so you might as well give your ssn/ein right away from a long term solution.

Run and gun accounts are done for. Although LoopHole probably will disagree, they are no longer a secure method of income.

Why would it be directed towards you?

Up until my post, yours was the only one with sense. Except for the dig at another user. Avoid going personal OK?

It's an ever increasing amount of IDIOCY being expressed by supposed experts I was muttering about.

Simple fact is Professional Tax advice is needed.

Christopher · #10 10-23-2012

so what do we need to do...add ein?

rcdrivertim · #11 10-23-2012

I just got an EIN from the IRS. WITHOUT a business license!! Not sure if that is a revelation or not LOL I have been looking over the site to see if Paypal can get any info other than a valid EIN. Can someone let me know where to look?

Thanks for a great forum!

nobody999 · #12 10-23-2012

Quote:

Originally Posted by rcdrivertim

I just got an EIN from the IRS. WITHOUT a business license!! Not sure if that is a revelation or not LOL I have been looking over the site to see if Paypal can get any info other than a valid EIN. Can someone let me know where to look?

Thanks for a great forum!

i think anyone can get an EIN without a business license.

slim jim · #13 10-23-2012

EIN = make sure you pay your taxes. they could care less how your entity is setup

DeanChev · #14 11-03-2012

I have two questions, number 1 is if paypal asks for my SSN or EIN, and I don't provide it, will they only limit the account until the next year or is it permanent? Also, I already made an EIN, but I have forgotten some of the info I used such as my business name, am I allowed to make another one? Paypal can only see the business name on the EIN correct?

Futuremogul888 · #15 11-03-2012

This topic is starting to get played out. The same question is being asked or just stated as alleged fact as done by the OP on a daily bases, as many different ways as possible. I think the new eBay Stealth update should address this. Yes this was a major problem that came out of the woodwork but as always the people of Aspkin have conquered it. Get an EIN, change to a business account, requirement met. PROBLEM SOLVED. CASE CLOSED

MM78 · #16 11-03-2012

Quote:

Originally Posted by DeanChev

I have two questions, number 1 is if paypal asks for my SSN or EIN, and I don't provide it, will they only limit the account until the next year or is it permanent?

They will most likely Limit you Permanent until you do.

Quote:

Also, I already made an EIN, but I have forgotten some of the info I used such as my business name, am I allowed to make another one? Paypal can only see the business name on the EIN correct?

Can't you go online or call somewhere to get that info, and just to bust your balls...did you not write any of the info down?

GreenBean · #17 11-03-2012

Quote:

Originally Posted by DeanChev

I have two questions, number 1 is if paypal asks for my SSN or EIN, and I don't provide it, will they only limit the account until the next year or is it permanent? Also, I already made an EIN, but I have forgotten some of the info I used such as my business name, am I allowed to make another one? Paypal can only see the business name on the EIN correct?

Not going to reply to your 1st question. Answers are on the forum already.

Your second question is more serious.

You should be able to check with the IRS for the full details of your EIN.

Now, I do not know how or when you created this EIN, but please be very careful of mucking around creating more. If you can not do this yourself, you MUST get the correct advice from a TAX PROFESSIONAL.
However the IRS caters for the careless. Below is a URL that should aid you recover this.

Lost or Misplaced Your EIN?

Packattack12 · #18 11-03-2012

This 200/$20,000 is only per calendar year right? When jan 1st comes the limits reset correct?

MM78 · #19 11-03-2012

If you get hit with the 200/$20k the IRS is going to want their $$$$, and paypal will have to give it up or shut you down...this is how I see it.

GreenBean · #20 11-03-2012

paypal do the numbers racket.

PAY naffin pal PAYPAL