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Old 09-23-2017
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Default Very confused about 1099k and bypass.

So, from what I understand is once I pass 200/$20000 in sales, I was forced to provide SSN/EIN. I am a Canadian that applied for a EIN and I bypassed the error. Does this mean I have to start reporting income to the IRS? I am a Canadian using a US account and would not like the trouble of reporting to both the IRS and CRA.
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Old 09-24-2017
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Default Re: Very confused about 1099k and bypass.

Yes, you will have to report. The Paypal limit is reset every year, though. Paypal only reports when BOTH terms are met.

As for U.S. to Canadian rules, they are governed by an agreed tax treaty. If you earn less than 10,000 dollars or present less than 184 days in the U.S you dont have to file. Since you are probably earning more than 10k, then you would be required to pay taxes then to the IRS and file on your Canadian return what you paid to avoid double taxation.
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Old 09-24-2017
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Default Re: Very confused about 1099k and bypass.

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Originally Posted by vettefever17 View Post
Yes, you will have to report. The Paypal limit is reset every year, though. Paypal only reports when BOTH terms are met.

As for U.S. to Canadian rules, they are governed by an agreed tax treaty. If you earn less than 10,000 dollars or present less than 184 days in the U.S you dont have to file. Since you are probably earning more than 10k, then you would be required to pay taxes then to the IRS and file on your Canadian return what you paid to avoid double taxation.
Thanks for the reply, if I choose not to report taxes and take the risk with IRS, will paypal ban me?
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Old 09-24-2017
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Default Re: Very confused about 1099k and bypass.

Forum in general is not meant for financial/legal advice - best to ask a financial professional.
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Old 09-24-2017
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Default Re: Very confused about 1099k and bypass.

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Originally Posted by rsot View Post
Forum in general is not meant for financial/legal advice - best to ask a financial professional.
Not sure if they my accountant will know if PP will ban me . I plan to not report taxes for sure because i feel safe from IRS in Canada, but I want to be prepared if they ban my pp account.
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Old 09-25-2017
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Default Re: Very confused about 1099k and bypass.

Rely on Vette's comments, he knows this stuff.
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Old 09-26-2017
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Default Re: Very confused about 1099k and bypass.

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Originally Posted by dabestplayer View Post
Not sure if they my accountant will know if PP will ban me . I plan to not report taxes for sure because i feel safe from IRS in Canada, but I want to be prepared if they ban my pp account.
I honestly would never condone playing with taxes. While you may be in Canadian jurisdiction, remember, those taxes must be filed across agencies. The small amount of gain you would get from avoiding taxes is not worth the risk of penalty. Trust me on this. Within the U.S. the IRS boys can do whatever they want even almost past our extremely strong constitutional rights here in the U.S.

As for the paypal getting toasted for not reporting, it is highly likely they have some kind of backlash to it. It may not be immediate, but I am willing to bet that Paypal has international controls on taxation/evasion.
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Old 09-26-2017
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Default Re: Very confused about 1099k and bypass.

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Originally Posted by dabestplayer View Post
Not sure if they my accountant will know if PP will ban me . I plan to not report taxes for sure because i feel safe from IRS in Canada, but I want to be prepared if they ban my pp account.
As for basing things on an accountant-- I am one. I don't know Canada's policies on tax immunity or evasion, but I would tread lightly considering there is still a NAFTA agreement between the two.
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Old 09-26-2017
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Default Re: Very confused about 1099k and bypass.

One year I didn't even file because I made less than 12K. If you work for an employer (legitimate business), they do file your earnings. This is a somewhat touchy subject for what people say or don't say. I mean, after all you did say you put your EIN so there you go.
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Old 09-26-2017
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Default Re: Very confused about 1099k and bypass.

All you need to do is get a Canadian Paypal account, that would be 10X easier then keeping a US one because the rules are different and Canada obviously doesn't report to the U.S. (IRS). That would be the easy fix. If you don't, you are subject to the normal rules U.S. citizens are subject to = IRS taxes.
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