Paypal requesting Tax iD

[Heracles97]

Hello, so I received my first request from Paypal today for a Tax iD.
Either with a SSN
OR EIN or individual tax identification number


So to start, I have had the account for around 2 years now.
Due to privacy reasons, I have NOT listed the account under my name, but under an alias.

I have not reached the 20000$
currently at 4000$.
I do understand that I can continue selling until I reach that 20000$.
My only problem, is that my business just recently started to grow, I am currently on my prime time, I do believe that I will reach well over 20000$ within a year.


I have no problems paying taxes, but my issue is that what would I be paying for exactly?

All my product go through customs and I regularly pay taxes for them.
Would I be asked to pay taxes on them once more?
I do understand the income part, but statistically I only receive about 20% as pure profit, due to shipping fees and ebay/paypal fees.

I currently reside in Canada.
I wouldn't like to give out my SSN to eBay,
but Id like to know what the risks are?
My business is fully legal.


What are my other options?
Do I really need to create a new stealth account?

Thank you for your help.

[toml3030]

Originally Posted by Heracles97

I have not reached the 20000$
currently at 4000$.
I do understand that I can continue selling until I reach that 20000$.
My only problem, is that my business just recently started to grow, I am currently on my prime time, I do believe that I will reach well over 20000$ within a year.

I think you're misunderstanding he $20,000 requirement. $20,000 is the amount at which they must collect SS# by law. They can choose to collect the info before that. Also, it's not only $20,000, it's also 200 paypal transactions. So if you're doing 40 transactions at $10 a piece every month, they will ask for the info well before $20,000

Originally Posted by Heracles97

I have no problems paying taxes, but my issue is that what would I be paying for exactly?

If you give the SS# to paypal, they will issue you a tax form called 1099 and they will send a copy to the government. Eventually the government will want to match the 1099 issued to you with an income tax return, which you will not file because you gave ⊗⊗⊗⊗ info to paypal.

Originally Posted by Heracles97

I wouldn't like to give out my SSN to eBay,
but Id like to know what the risks are?

eventually you will be banned

Originally Posted by Heracles97

My business is fully legal.

It's not fully legal if you gave ⊗⊗⊗⊗ US info to eBay and operating as a US entity without filing a US tax return.

[Dufus]

I just got the same message today.
Selected ''not usa citizen''.

[modernman]

I am Canadian it's pretty easy to get an EIN number IRS does it over the phone.
For what I have been told (numerous times) NEVER GIVE PP a SSN (SIN in Canada) just your EIN ONLY!