Important - Confirm your Taxpayer Status
In order to comply with your State Form 1099-K income reporting requirements, we need you to provide your Taxpayer Identification Number (TIN).
1. Log into your PayPal account
2. Click on your account settings (gear icon in the upper right corner)
3. Within Account Options, enter your TIN.
Why is this required?
Under the IRC Section 6050W of the United States Internal Revenue Service (IRS), PayPal is required to report the total payment volume received by U.S. account holders whose payments exceed both of these federal levels in a calendar year:
1. U.S. $20,000 in gross payment volume from sales of goods or services in a single year.
2. 200 separate payments for goods or services in the same year.
The information return used by PayPal to satisfy this requirement is a tax Form 1099-K.
State Reporting Requirements
Massachusetts has implemented Form 1099-K reporting requirements that are different from federal tax reporting requirements. These different reporting requirements mandate that PayPal report on account holders who receive payments for goods and services of $600 or more.
To comply with Massachusetts state tax reporting requirements, we'll issue you a Form 1099-K if you meet this requirement. This form summarizes the gross payments you received through PayPal for the sales of goods, or services during the most recent calendar year.
We send this information to Massachusetts tax authorities to comply with respective state tax reporting regulations.
Note:
PayPal will not report this information to the IRS since the payment volume is below the IRS federal reporting requirements.
PayPal is not qualified to give you specific tax guidance and asks that you contact a tax professional.
If you need more information about these specific state requirements, please visit that state tax authority's guidance at the following link:
https://www.mass.gov/service-details...-organizations
Sincerely,
PayPal