Forum

Tax time with stealth account
 

I apologize if this has been answered before, I wasn't able to gather this information.

If someone has a successful stealth Ebay business with a ⊗⊗⊗⊗ name, address, etc...With revenue over a certain amount Ebay/paypal reports earnings to the IRS. How does one handle taxes at the end of the year?

I appreciate any guidance you can provide!

Re: Tax time with stealth account
 

Long before you get to the reporting threshold, they will request a tax-id number for reporting purposes. When you provide that number (an SSN or an EIN) to PayPal or Amazon, they will verify the individual name associated with the SSN, or the business name associated with the EIN, with the IRS.

Most people use an EIN with a business name to do this. You CANNOT give any ⊗⊗⊗⊗ information to the IRS. But the IRS won't share anything with anyone except to verify that the name given matches the name associated with the tax-id.