I stand corrected. I previously thought it was $20,000 or 200 sales.
This is what PP says: https://cms.paypal.com/us/cgi-bin/ma...ng_us/IRS6050W
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.
PayPal is required to report gross payments received for sellers who receive over $20,000 in gross payment volume AND over 200 separate payments in a calendar year.
PayPal will track the payment volume of your account#s# to check whether your payment volume exceeds both of these levels in a calendar year: $20,000 USD in gross payment volume from sales of goods or services in a single year 200 payments for goods or services in the same year
You may be asked to add your tax ID number, such as a Social Security Number #SSN# or Employer Identification Number #EIN#, to your existing account#s#, if you don’t already have one on file.
If you cross the IRS thresholds in 2012, PayPal will send Form 1099-K to you and the IRS for the 2012 tax year in early 2013. Will I be affected by the 2011 tax changes if I only meet one of the thresholds?
No. A seller has to exceed both IRS thresholds #$20,000 in gross payment volume and 200 separate payments) in a calendar year before a Form 1099-K is required.
We may require that you provide a tax identification number before you reach these thresholds however we will only report your payments if you exceed both thresholds.
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