PayPal Account Limited Tax ID Number, Will it Unlock After January 1st?

[vigilantex69]

So I messed up and didn't calculate out my sales correctly and was hit last night with the dreaded TAX ID verification. I literally only had 3 or 4 items listed right now (small ones) and when the last one sold last night the seller emailed me and said he couldn't make payment because eBay told him "the seller is not accepting payments at this time." I checked my email and last night at like 10PM I got this email from PayPal.

"Reminder: action required

Your account is limited
Confirm your taxpayer status today

Because you receive payment for goods or services through PayPal, we need to confirm your taxpayer status. This verification is required to comply with US. Internal Revenue Service (IRS) as well as State tax reporting requirements.

Your taxpayer status is not confirmed, so your PayPal account has been limited and currently you can’t request or receive money."


My question is, will this limitation go away after January 1st 2019? I will just have to cancel the auction and the high bidder but it is my fault for getting too close to the deadline (only three weeks away!)

Has anyone had this before? Will I all of a sudden be able to start accepting payments in January or is this account toast? This is one of my longest standing accounts so I would be devastated to lose it completely. Please help! I am normally very careful and have never come close to having this happen before. All feedback and recommendations welcome!

[phaz0rz]

In years past, yes that limitation would go away on 1/1/new year.

We won't know for certain if it's going to be same in 2019 until we get to 2019, but I would assume it will be the same.

[vigilantex69]

Awesome, thanks a bunch man! I will hope it goes away. I am still able to withdraw money for some reason? So should I leave money in there to pay eBay fees? Or will it not allow me to even do that? I have not tried shipping an item yet either but I would like to ship out because I don't want to stiff the buyers that purchased my items. However, if the account is toasted I don't want to pay $150 in eBay fees either.

[phaz0rz]

Your account isn't toast. A tax limitation is pretty much the lightest form of limitation you can get. The only impact it has on your account is it won't let you receive any more payments in the current calendar year.

You can still send payments, pay your fees, withdraw money, and everything else you'd normally be able to do.

If I were you I'd go ahead now and pay any pending eBay fees (since you presumably won't have any more fees until next year), print shipping labels for any orders you have pending, and then after a week or two, withdraw any $ left in your Paypal. I say a week or two just in case you get an unexpected return.

[vigilantex69]

Thanks for the feedback on this. I am going to go ahead and pay the eBay fees and such to keep the account active. Also pray I don't have any disputes in the time being until I can get it back up and running January 1st. I should have been a little more careful but it is an aged 4+ years account running strong. I was trying to make a little extra $$$ for Christmas and boom, hit the threshold.

Originally Posted by phaz0rz

Your account isn't toast. A tax limitation is pretty much the lightest form of limitation you can get. The only impact it has on your account is it won't let you receive any more payments in the current calendar year.

You can still send payments, pay your fees, withdraw money, and everything else you'd normally be able to do.

If I were you I'd go ahead now and pay any pending eBay fees (since you presumably won't have any more fees until next year), print shipping labels for any orders you have pending, and then after a week or two, withdraw any $ left in your Paypal. I say a week or two just in case you get an unexpected return.

[Kajunrook]

Well I beg to disagree with my esteemed friends but they asked for tax id on my account when it reached $52 so I doubt it will "reset" January 1st or go away.

[aking]

I just got the same thing on my account. Hopefully it resets after 1/1. I'll just move on to another account.

[phaz0rz]

Originally Posted by Kajunrook

Well I beg to disagree with my esteemed friends but they asked for tax id on my account when it reached $52 so I doubt it will "reset" January 1st or go away.

You're talking about something different.

And I said "in years past." We'll see what happens this time.

[vigilantex69]

Originally Posted by aking

I just got the same thing on my account. Hopefully it resets after 1/1. I'll just move on to another account.

Man I hope so. This is my best account! So mad I let it get to that point! Praying January 1st it allows me to start accepting payments again. I was able to pay the outstanding ebay fees and also ship out a couple of items, so maybe there is Hope? Just says I can’t accept anymore payments right now.

[phaz0rz]

There's plenty of hope, bud. I don't know what else I can say to reassure you. In years past it went like this : the little red notification thing in the top right corner of your PP account won't go away on 1/1/201x, but you are able to start accepting payments again on 1/1/201x. There won't be an email from PP on that day saying you can receive payments again. You'll just have to be brave enough to try accepting a payment.

Basically if you able to list anything on eBay on 1/1/2019 using your PP email as the payment method, then your account reset.

[CAPH]

Any updates guys ? I still got the ITIN notification?

[Elliot]

Any updates on reset accounts or removed limitations...?

[WasTopRatedThenBanned]

If you really like the account form a LLC.

[vigilantex69]

I just tried to send money to the account from another PayPal account and it said the same thing "You can't send them money, your recipient can't accept payments right now."

So it is still limited 100% apparently. I guess I have no other options?

[vigilantex69]

Is this PayPal account toast? Could I not just open another PayPal account and link it to my already established eBay account that is almost 5 years old? What other options if any do I have for my PayPal account?

[JamesNorth101]

Short term that works but long term it would get limited

[WasTopRatedThenBanned]

Why not get a LLC+EIN?

[vigilantex69]

Originally Posted by JamesNorth101

Short term that works but long term it would get limited

What makes you say that? How long would it last? It’s a legit account, but I don’t want to mess with the LLC Tax ID stuff. I’m selling off collectibles and stuff from my dad, I don’t want to pay taxes on it.

[vigilantex69]

Originally Posted by WasTopRatedThenBanned

Why not get a LLC+EIN?

I don’t want to mess with paying taxes on it. I own rental properties and such and don’t want to give a reason to cause anymore headaches at tax time. Plus the account is 100% stealth. Nothing on it is real?

[JamesNorth101]

Originally Posted by vigilantex69

What makes you say that? How long would it last? It’s a legit account, but I don’t want to mess with the LLC Tax ID stuff. I’m selling off collectibles and stuff from my dad, I don’t want to pay taxes on it.

You may not want to... but legally you are still obligated to.

[vigilantex69]

Originally Posted by JamesNorth101

You may not want to... but legally you are still obligated to.

I don’t have to pay taxes because this isn’t a business. I’m liquidating my father’s old baseball cards. Most of them are sold as a loss. However again, the point of stealth is so I don’t want to mess with it. I don’t want to keep detailed records of all this stuff and worry about an IRS audit, I’m not making much money off it. I would just like to keep selling.

Again, back to my original question? Can I add a new PayPal account to this and keep it going? That’s my point of the conversation. Thanks!

[JamesNorth101]

https://www.aspkin.com/forums/paypal...tml#post968544

That is the answer....

Long term it’s not a solution as it will get linked to the original PayPal and limited

How long will it last. No one knows. Days, weeks, could even be months