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07-08-2014
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Activity: 0% Longevity: 63% | | PayPal Lost It - Tax ID Request
An 8 months old account now TRS stuck at 25/$2500 limit has been requested to provide Tax ID.
My monthly gross income from this account is under $1000. I am not even sold out of my limit this month. What is the rationale?
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07-08-2014
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Activity: 0% Longevity: 96% | | Re: PayPal Lost It - Tax ID Request
Rationale is that if paypal project the sales will approach 200/$20,000 ID might be requested.
Since it is paypal, sense is not needed.
To quote that old hoary saying, spread the sales over different accounts.
( and scream )
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07-08-2014
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Activity: 0% Longevity: 100% | | Re: PayPal Lost It - Tax ID Request
Ouch.. it's Tax ID time or start moving over to a new account(s).
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07-09-2014
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Activity: 0% Longevity: 87% | | Re: PayPal Lost It - Tax ID Request
My CPA told me more then a year ago and I posted about it that this is NOT CONCRETE 200-20k.
IRS is on Pasypals tail about missing several who reached it the first year and no reporting was done so they had to go with the PROJECTED accounts that might hit or get close to those numbers.
I have on my wall written down that someone posted 175 sales and 5,500 in amount sold and got it.
Spreading sales over multiple accounts is the way to go.
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07-09-2014
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Activity: 0% Longevity: 96% | | Re: PayPal Lost It - Tax ID Request
I also think it fair to say that users not wanting to run multiple accounts should be aware from the account creation that there is a probability of paypal wanting ID to meet IRS requirements.
Germaine to be prepared as soon as feasible to keep that stealth account running. |
07-09-2014
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Activity: 0% Longevity: 61% | | Re: PayPal Lost It - Tax ID Request
Just get an ein. Sole prop it. I got over 300 transactions so far this year, provided my ein number and it's been fine. <crosses fingers>
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07-09-2014
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Activity: 100% Longevity: 83% | | Re: PayPal Lost It - Tax ID Request Quote:
Originally Posted by glacier922 Just get an ein. Sole prop it. I got over 300 transactions so far this year, provided my ein number and it's been fine. <crosses fingers> | @glacier922, nice idea but GoTeBay might be working Canadian platform so EIN won't apply :(
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07-09-2014
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Activity: 0% Longevity: 63% | | Re: PayPal Lost It - Tax ID Request
I have no problem providing EIN actually. At the end of the year, I will never be close to $1000.
This account has only 25/$2500 limit, it is like burning an EIN. I would rather let go and use the EIN on a much beneficial account.
This account has only sold 180/$3000; ridiculous. Based on this, even if you spread sales, all your accounts will be hit with Tax ID. I am sure IRS will be pissed with one person trying to apply for 50 EINs.
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07-11-2014
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Activity: 7% Longevity: 66% | | Re: PayPal Lost It - Tax ID Request Quote:
Originally Posted by Sandy D
I have on my wall written down that someone posted 175 sales and 5,500 in amount sold and got it. | I had one of my Paypal's locked last year from receiving payments and closing the account at like 195 payments received and only $5,000. In the years before I had well over 200 transactions on some stealth accounts but kept it under 20k.
I did notice for 2013 1099k on my EIN PayPal. It was the first year that on the form there was a box where PayPal filled in the number of transactions for the year. The previous two years it had been left blank.
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07-11-2014
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Activity: 0% Longevity: 63% | | Re: PayPal Lost It - Tax ID Request
Okay, so PayPal asks for SSN/EIN/ITIN. I leave account alone and never sell until end of year.
What happens in January of following year. Will they still need the Tax ID or message resets?
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07-11-2014
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Activity: 0% Longevity: 59% | | Re: PayPal Lost It - Tax ID Request
it will eventually be limited if docs not provided.
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07-11-2014
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Activity: 7% Longevity: 66% | | Re: PayPal Lost It - Tax ID Request Quote:
Originally Posted by keepongoing it will eventually be limited if docs not provided. | This is not true, has not been the case over the past 3 years. Usually the request is just a warning sign that you need to slow down what you are doing.
Go back through create and excel sheet with the number of payments you have received for the year and $ amount. Figure out where you are for the year compared to how far in the year you are. If it is July and you have 160 sales. Time to abandon the account until December. Unload you last 20 or so items at the end of the year so you do avoid the limitation.
If you have a solid game plan you can deal with these requests and maximize each account.
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07-11-2014
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Activity: 0% Longevity: 63% | | Re: PayPal Lost It - Tax ID Request Quote:
Originally Posted by vogeltron This is not true, has not been the case over the past 3 years. Usually the request is just a warning sign that you need to slow down what you are doing.
Go back through create and excel sheet with the number of payments you have received for the year and $ amount. Figure out where you are for the year compared to how far in the year you are. If it is July and you have 160 sales. Time to abandon the account until December. Unload you last 20 or so items at the end of the year so you do avoid the limitation.
If you have a solid game plan you can deal with these requests and maximize each account. | This is discussion is getting better and interesting.
Now, once the new year starts, what happens with the warning sitting in PayPal? Does it reset the limits in eBay?
Has anybody been there before?
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07-11-2014
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Activity: 7% Longevity: 66% | | Re: PayPal Lost It - Tax ID Request Quote:
Originally Posted by GoteBay This is discussion is getting better and interesting.
Now, once the new year starts, what happens with the warning sitting in PayPal? Does it reset the limits in eBay?
Has anybody been there before? | You still usually have a reminder on your account. But you do not have the prompt when you log in.
I actually had one account last year locked from receiving payments and closing the account because I didn't know they were enforcing 200 transactions. Previous years it had to be close to both. I was at like 197 payments and $8000 or something like that.
Anyways mid January this year about the time they would send out 1099k's the account was reinstated automatically by PayPal. I never plan on getting that close to the threshold so it happens again.
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07-12-2014
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Activity: 7% Longevity: 66% | | Re: PayPal Lost It - Tax ID Request Quote:
Originally Posted by keepongoing it will eventually be limited if docs not provided. |
This is also big Fallacy. In my experience several years dealing with this and multiple friends who run lots of stealth accounts. If you get a Tax ID request it is simply a warning. If you just quit selling and wait until the next year the pop up message every time you log in goes away by mid Jan when they send out 1099k's.
Last year once you got the first request for Tax ID you got two more emails about it depending on how close you got to 200 transaction or $20k. The third email was the death nail.
It is all based on how many transactions you have how early in the etc. PayPal has a algorithm for projecting sales.
I have been the only one on this site that has even said what happens when you don't give the Tax ID. They simply lock your account from receiving funds and withdrawing money. Before you hit the 200/20k threshold to cover their own behind.
Sorry to rant but I am sick of people on here talking out of their behind when in many cases they have no substance or experience to back it up.
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07-12-2014
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Activity: 0% Longevity: 65% | | Re: PayPal Lost It - Tax ID Request
Your case is probably more on the rare side, and you,probably will not get accounts with the sales this one is at and have paypal ask for a tax ID, so you should just give them an EIN and at least you know that it won't get limited for that reason
I usually will get asked at around 150/$5000
So i go by 150/$5000 as the IRS's 200/20k as it pertains to me, because with the items I sell at 150 items I will get asked for a tax ID, so I operate with that in mind
And im sure every once in a while paypal will ask at a really low sales amount , everything is computerized so theres always going to be glitches
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07-12-2014
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Activity: 7% Longevity: 66% | | Re: PayPal Lost It - Tax ID Request
I really wish people would stop encouraging individuals on here to add EIN number to Stealth Accounts. Again if you have ever applied for an EIN the letter the IRS gives tells you pretty specific information. | The Following User Says Thank You to vogeltron For This Useful Post: | |
07-12-2014
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Activity: 0% Longevity: 96% | | Re: PayPal Lost It - Tax ID Request
@vogeltron
It would be better if users got told what they might do. Then told to seek tax professional advice.
Too many non-experts offering info when they know nothing of the user's business. | The Following User Says Thank You to GreenBean For This Useful Post: | |
07-12-2014
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Activity: 0% Longevity: 63% | | Re: PayPal Lost It - Tax ID Request Quote:
Originally Posted by glacier922 Just get an ein. Sole prop it. I got over 300 transactions so far this year, provided my ein number and it's been fine. <crosses fingers> | I agree with Glacier. Get an EIN, and do not go over $20k. I don't know if you have tried rolling a PP into a Business PP or not, but it is easy once you get your EIN. Choke up and do it, then you never have to worry about this 200 transaction BS again...just the dont go over the 20K mark i a calendar year. I have done 2 accounts like this, and I am about to do a third.
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07-12-2014
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Activity: 0% Longevity: 58% | | Re: PayPal Lost It - Tax ID Request Quote:
Originally Posted by GoteBay I have no problem providing EIN actually. At the end of the year, I will never be close to $1000.
This account has only 25/$2500 limit, it is like burning an EIN. I would rather let go and use the EIN on a much beneficial account.
This account has only sold 180/$3000; ridiculous. Based on this, even if you spread sales, all your accounts will be hit with Tax ID. I am sure IRS will be pissed with one person trying to apply for 50 EINs. | You can apply for an EIN each and every day (business days i think) so don't worry about having too many. Only problem I know of is that you can only have a single EIN when registering as a Sole Prop.
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07-12-2014
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Activity: 0% Longevity: 58% | | Re: PayPal Lost It - Tax ID Request Quote:
Originally Posted by vogeltron This is also big Fallacy. In my experience several years dealing with this and multiple friends who run lots of stealth accounts. If you get a Tax ID request it is simply a warning. If you just quit selling and wait until the next year the pop up message every time you log in goes away by mid Jan when they send out 1099k's.
Last year once you got the first request for Tax ID you got two more emails about it depending on how close you got to 200 transaction or $20k. The third email was the death nail.
It is all based on how many transactions you have how early in the etc. PayPal has a algorithm for projecting sales.
I have been the only one on this site that has even said what happens when you don't give the Tax ID. They simply lock your account from receiving funds and withdrawing money. Before you hit the 200/20k threshold to cover their own behind.
Sorry to rant but I am sick of people on here talking out of their behind when in many cases they have no substance or experience to back it up. | I was trying to dodge the 20K threshold and used a second PP account without a SSN. I think it was November and I sold a bunch of my things and make about $8K before getting the request. I ignored and and tried to push through the holidays. PP made it so I could no longer receive payments so I just went back to the first paypal account to finish out the year. I didnt go back to the other PP for a long time but when I did, it had been cleared to take payments again. It was definitely well into the next calendar year, I know that for sure.
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07-13-2014
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Activity: 0% Longevity: 74% | | Re: PayPal Lost It - Tax ID Request Quote:
Originally Posted by GoteBay I have no problem providing EIN actually. At the end of the year, I will never be close to $1000.
This account has only 25/$2500 limit, it is like burning an EIN. I would rather let go and use the EIN on a much beneficial account.
This account has only sold 180/$3000; ridiculous. Based on this, even if you spread sales, all your accounts will be hit with Tax ID. I am sure IRS will be pissed with one person trying to apply for 50 EINs. | Unless it's warren buffett that has the 50 EINs.
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