Have EIN and SSN on my real account but who pays taxes?

[verbalseduction]

I have a question thats confusing the hell out of me

I have an account under my moms name with an EIN attached. Paypal was asking for the SSN so my mom gave it and thats attached to it as well. My question is for the paypal business account who is liable to pay the taxes
The business EIN I made for it or the SSN(which is under my moms name)
My mom is not operating this account and it would screw her over if she were to pay the taxes.
If it is her that has to pay the taxes what should I do

Please let me know what you guys know as this has been stressing me out for weeks

[dallis]

If they issue the 1099K in the SSN your mom is responsible. If they issue the 1099 to the EIN and the EIN is in your name it's you.

I'd call and be sure it's going to be issued to the EIN and pray they do it.

This is just another reason not to use other people's info, you've exposed your mom to a possible tax issue, and one way or another this may end up hurting her even if you pay the taxes for her.

I know this is unforeseen and wasn't your intention, but now it's done and can't be undone.

[phaz0rz]

Agreed with Dallis. You really shouldn't have used your mom's info.

What kind of EIN are you using?

If it's a sole proprietor EIN or a single-member LLC EIN, then your mom will be required to pay taxes on your profits regardless of whether or not the 1099k is sent out with the EIN or SSN printed on it. Profits from those two types of entities are passed along to the owner's personal tax return. Since the EIN is in your mom's name, she is the owner and will have to report the profits on her personal taxes for either of those two entity types.

EDIT: after re-reading, I'm not sure if the EIN was made in you or your mom's name. Regardless though entity type makes a difference because it determines how you file taxes.

[ebaystealth1974]

I think it's in his name. So the income would be reported on him, right?

[phaz0rz]

If it's OP's EIN, and it's a single-member LLC/sole prop EIN, then yes the business income would be passed to OP's personal tax return. The mom's SSN should be irrelevant since the account has been upgraded to business. Most of my first post was made with the assumption OP's mom obtained the EIN. I don't think PP has any way to check the SSN an EIN is registered under so that shouldn't be a problem.

OP- I don't know what kind of business you setup. Just know if it's not one of the two I mentioned, you'll have to file a separate return for the business.

[verbalseduction]

Originally Posted by phaz0rz

If it's OP's EIN, and it's a single-member LLC/sole prop EIN, then yes the business income would be passed to OP's personal tax return. The mom's SSN should be irrelevant since the account has been upgraded to business. Most of my first post was made with the assumption OP's mom obtained the EIN. I don't think PP has any way to check the SSN an EIN is registered under so that shouldn't be a problem.

OP- I don't know what kind of business you setup. Just know if it's not one of the two I mentioned, you'll have to file a separate return for the business.

Yes I have a paypal business account with the EIN under my name
Please confirm the SSN will be irrelevant since it is a business account on paypal
Thank you!!!

[phaz0rz]

Originally Posted by verbalseduction

Yes I have a paypal business account with the EIN under my name
Please confirm the SSN will be irrelevant since it is a business account on paypal
Thank you!!!

It will be - don't worry. There's only room for one tax ID on the 1099.