Paypal asking for tax ID number or SSN

ebay2417 · #1 09-25-2017

After get 20.000$ in sale, paypal ask for tax ID number or SSN.
It is steath account, what should I do?

phaz0rz · #2 09-25-2017

Form a business and give them an EIN.

slokor · #3 09-25-2017

Note that once you provide an EIN youre on the hook for the taxes and will be receiving a 1099 every year for the account.
Your other option is to stop using the account for the year once you approach 20k and spread your sales across multiple accounts.

phaz0rz · #4 09-25-2017

1099 is only sent if you pass $20,000 and 200 transactions regardless of whether or not you give a tax ID. Adding an EIN certainly doesn't mean Paypal is going to send a 1099 for you every year from here on out. Only if you pass the thresholds.

Still though, not a good idea to add an EIN without intentions of paying taxes regardless. So the point stands.

RussellSimon · #5 10-02-2017

You will not receive the 1099K from paypal unless you pass $20,000 in sales AND 200 transactions if you have an EIN number attached or not. If you attach an EIN it's probably your best bet

aking · #6 10-02-2017

I find it hard to believe you got this after selling one item. I've always gotten this at least a month into selling. They judge off your sales per month if you will surpass the $20k per year threshold.

phaz0rz · #7 10-02-2017

Quote:

Originally Posted by aking

I find it hard to believe you got this after selling one item. I've always gotten this at least a month into selling. They judge off your sales per month if you will surpass the $20k per year threshold.

Haha. Who said anything about selling one item?

dallis · #8 10-02-2017

You have to pay taxes whether you get a 1099K or not.

Seriously, 'search' is your friend. Probably 10% of the threads on this board cover this exact question in exhaustive, comprehensive, microscopic detail.

Chandiesel · #9 10-03-2017

Hello Phazorz

You are Da Man on here! Lots of great info you and JeffWEico. Ive got a question. Ive got a stealth paypal and ebay account. Paypal requested EIN or SSN. I signed up for my EIN with the IRS over 2 weeks ago as an LLC single person. Im unable to accept paypal payments until I enter the EIN. When I check the box to enter my EIN it prompts me to upgrade to a business account. On THAT page would you suggest I enter the proper business name that matches up with the IRS for the EIN but enter the stealth address already on the account? Im in Calif. THe stealth account is out of Massachusetts. From everything Ive read that youve posted along with others is that they only check the BUSINESS NAME matches with the EIN? After I upgrade to business account will I then be directed to enter my EIN ? WHat else do they ask for at that point?
Also I havent yet filed the paperwork for the LLC yet . WIll that affect the EIN matching on the IRS website? Its been over 2 weeks. How can one confirm if the EIN is in the IRS database yet? Thank you . AWESOME website.

rsot · #10 10-03-2017

I don't think OP is based in the USA...

dallis · #11 10-04-2017

The EIN is effectively immediately.

ebay2417 · #12 10-05-2017

Quote:

Originally Posted by rsot

I don't think OP is based in the USA...

Yes, I am not from USA, just buy a steath account to selling on Ebay

rsot · #13 10-05-2017

Quote:

Originally Posted by ebay2417

Yes, I am not from USA, just buy a steath account to selling on Ebay

Well that's a problem - can you come to the USA at all? Or explore TIN option on IRS website (I don't remember all the criteria)?

**SaiJin** · #14 10-05-2017

Quote:

Originally Posted by dallis

The EIN is effectively immediately.

If you are not from USA, you need to change your flag to your country flag so that we give you the correct info.

phaz0rz · #15 10-05-2017

Quote:

Originally Posted by SaiJin

If you are not from USA, you need to change your flag to your country flag so that we give you the correct info.

Dallis is clearly in USA. Troll posts...

aking · #16 10-05-2017

You have limited time to sell on this account. Start preparing to stop sales altogether, you probably have about a month before they shut it down.

Move on to another account. Spread your sales out between multiple accounts so you're less likely to trigger the 1099 issue.

There are plenty to sellers here that you can buy high limit accounts from so you can sell in high volumes over multiple accounts.

aking · #17 10-05-2017

Quote:

Originally Posted by phaz0rz

Haha. Who said anything about selling one item?

Sorry, I must have misread something.

ebay2417 · #18 10-10-2017

can I add multi paypal account to one ebay account.
Ex: 1 list for 1 paypal account

kgattison · #19 05-27-2018

Is there a waiting time for the EIN from the time I get it online and being used with paypal? Does that make sense?

Gladiator · #20 05-27-2018

Quote:

Originally Posted by kgattison

Is there a waiting time for the EIN from the time I get it online and being used with paypal? Does that make sense?

No. Go ahead and enter it. They don’t process it immediately so it’s safe to enter it immediately after getting it.