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Paypal account access has been limited (Tax ID)
 

So I got the dreaded email from paypal to my stealth account for not providing a SSN/TIN/EIN number. My limits are 300/$7500 right now and I've been selling quite a bit (Just hit around 190 items sold).

I can't use my SSN because it is linked to an account that got banned.

I used a variation of my name, and the address that I used is that of my uncle's address.

I don't know what to do. This eBay/paypal account were doing really well for me :(

Re: Paypal account access has been limited (Tax ID)
 

Then you need to get an EIN.

Re: Paypal account access has been limited (Tax ID)
 

EIN from a LLC (corp). Also watch for a response from Yankee. They are pretty adept to doing this as well. If you love this account, then talking to a tax professional and paying the $300-$400 fee to form an LLC should be worth it!

Re: Paypal account access has been limited (Tax ID)
 

you ever had a pbnj sandwich. you gota "SPREAD" it on real good if you wana have a good sandwich. same concept here...:lol::peace::peace:

Re: Paypal account access has been limited (Tax ID)
 

How do you feel about sole proprietorship?

Re: Paypal account access has been limited (Tax ID)
 

Sole Proprietorship and Partnership will link back to your SSN instead of an EIN. So avoid those 2 options with PP.

Re: Paypal account access has been limited (Tax ID)
 

This might sound dumb but, does forming an LLC require talking to a tax professional or is it something that can be done by myself?

Re: Paypal account access has been limited (Tax ID)
 

I've heard mixed opinions on this. When I get to the point where I have a account strong enough I think I'll follow your advice. Some people say paypal only sees your SSN if they have a reason too. If I have a account that is strong enough that needs a EIN I mid as well just invest in it and buy a LCC. OP should do the same! Always think long term.

Re: Paypal account access has been limited (Tax ID)
 

Since I am not a tax professional and I could just be some random dumb ass on here (not claiming that I am or am not), you should talk to someone who knows their stuff, Tax Attorney or CPA. You do not want to go through legal zoom. I hear they are steep on their charges. You should have questions or at least answers that need validation by a professional. Plus, they would be the ones to form the LLC for the EIN.

You may not need a professional. You may be able to form it yourself without help. Personally, I would not. If you screw up, you will be out the money to form the LLC anyhow, then you'll have to redo it...maybe. I just think it is best to get it done right the first time.

Re: Paypal account access has been limited (Tax ID)
 

Why can't he make a sole proprietorship and obtain an EIN for his SP, doesn't it work the same way as having an LLC? All paypal can see is the EIN Number right, how could he be more likely to get linked if he has a SP compared to an LLC

Re: Paypal account access has been limited (Tax ID)
 

Yea I asked about this a while back and basically just got nasty remarks from people saying you can't ask this yada yada.. I honestly don't even know how to get a tax professional (I just turned 22) ...I only turn to this place because whenever I tell anyone I know about what I do and how I make money...it never sounds right. People always think I'm committing identity theft/felonies...

Re: Paypal account access has been limited (Tax ID)
 

Technically with a SP its connected directly to your S.S thats why we only get 1 from the IRS. With a LCC many people can "become partners, own it" ...like Best Buy for instance. Thats why when the banks went down during the recsion a lot of the people high up didn't go to prison. I believe (may be wrong) paypal only can see a business name and obviously the EIN with LCC, but with SP they CAN if they want to see the name attached since its directly connected to your S.S

Re: Paypal account access has been limited (Tax ID)
 

Of course you can always still be limited and forced to provide a S.S ... never 100% bullet proof.

Re: Paypal account access has been limited (Tax ID)
 

I'm not too sure about the part where you said they can see your name/SSN if you provide an EIN that is attached to a SP. I'm pretty sure all they can see is the EIN.

I know when you get the 1099k form at the end of the year, your stealth name will show up on the form so that may cause problems with the IRS. That's the only downside I can see from using a SP. But my accountant said they don't care what the name is, they only care about the SSN or EIN number and they only care if they are getting their money.

Re: Paypal account access has been limited (Tax ID)
 

Sole Proprietorship EIN = will link back to SSN....
Corporation LLC (EIN) = Won't....

Which part does not make sense?

Re: Paypal account access has been limited (Tax ID)
 

ive been using an EIN with a Sole proprietorship for years now even though my ssn has been banned and haven't had a problem.

by the way you sound really obnoxious and rude when your phrase your questions like that, we're just discussing.

Re: Paypal account access has been limited (Tax ID)
 

Was I obnoxious when you've PM me in the past several times for help?

Re: Paypal account access has been limited (Tax ID)
 

If paypal for any reason needs to dig deeper into your account and EIN, there are sites to lookup information pertaining to that EIN, including the IRS if they have to, so in a SP it will then show your real name/SSN, while in a LLC it will just show the LLC name.

You might not had any problems so far because Paypal hasn't looked into it deep enough or you don't have issues, but that doesn't mean it won't be linked to your SSN.

The main point of an LLC is Limited Liability so anything negative that happens with that LLC, including tax issues, won't affect you personally or your assets, so that's another benefit you have, we're talking IRS stuff here so gotta be very careful how you do things especially since we're using stealth names, etc. That's the reason people suggest to talk to a tax professional to avoid getting yourself into any liabilities or dangers with taxes.

Re: Paypal account access has been limited (Tax ID)
 

@ MM No not particularly, but you are now.

But it's whatever if thats how you talk then its whatever I just had a bad day but when people say things like "which part doesn't make sense.." it just sounds really rude and unneeded when this forum is suppose to enlighten people not make people feel stupid.

But yea I'm not gonna say anything else about it.

And yea also back on topic I've been using a EIN with a sole prop attached on a stealth account where the names do not match up and have had no problems with PP and no problems filing my tax returns. I've also read a lot of posts where people haven't had a problem with doing this either. I plan on calling IRS and asking them more about this in the morning, to see if it won't cause any problems in the future.

Re: Paypal account access has been limited (Tax ID)
 

Point proven. This topic creates contradictory answers. What I would recommend as I'm sure MM78 would ...you probably have invested a lot of time in this account if you have got to the point where they NEED your S.S or EIN.

Invest in yourself! Buy a LCC and pat your self on the back that you could officially consider yourself a business man (in the eyes of the government at least haha)

Its silly to risk a account suspension if your account is strong enough to continually make you profit.

Re: Paypal account access has been limited (Tax ID)
 

How do you go about asking the IRS without sound like your committing identity theft? I keep running into this issue when I tell anybody outside this forum how I make my money. After I get done explaining they look at me like I just spoke in a foreign language. I'm kinda young so I don't honestly even know how to even obtain a tax professional. What did they say when you said you operate accounts under false/⊗⊗⊗⊗ names??? I need to talk to someone soon so I'm really interested in your response!!!!

Re: Paypal account access has been limited (Tax ID)
 

Yeah, I'm not rly sure how the conversation is gonna start lol. I'm just gonna be like oh I accidentally used my nick name for paypal and they already sent out the 1099k form I think is it cool if names don't match. I'm gonna try and play rly dumb and hopefully the person on the phone doesn't catch on. But I have other questions to ask unrelated to this stuff so I'll probably ask those first.

Ya I talked to 2 different cpas. I'm 22 also, and when I tried explaining how I have 5 diff ebay accounts and like 8 bank accs, a sole prop, and a LLC they thought I was crazy. But basically they all told me the same thing, that the IRS doesn't care about anything as long as they are getting your money and the tax payer numbers match up. So basically on your tax returns just write your tax id number, and write a check and you're good to go. Not sure if its that easy that's why I'm still inquiring about this stuff.

also this is the thread I read about paypal not being able to see your SSN they can only see if it matches or not: http://www.aspkin.com/forums/paypal-...y-ssn-ein.html

Not sure if things have changed since then.

Re: Paypal account access has been limited (Tax ID)
 

This link my be a helpful read...talks about the possibility of reporting taxes for an LLC under your own personal tax returns in different schedules forms just including all LLC numbers etc, but I'm guessing you'd still have to submit your 1099 documents with mismatch name so we're in the same boat. Need a definite answer on how people in here are handling the mismatch names on their 1099 from Paypal.

Single Member Limited Liability Companies

Re: Paypal account access has been limited (Tax ID)
 

Haha yea I just turned 22 a little bit ago. I honestly don't even know how to get a tax professional. I really haven't tried that hard but no one I know needs one so I resort to this....We all on here at the end of the day have one thing in common, WE ALL are entrepreneurs and ambitious in one way or another or wouldn't be here.

I really shouldn't speak on it since I don't have either yet.. but it makes 100% sense to me. Like it was said earlier paypal can only see your SS & name if they feel their is a security reason to do so (on sp's). This makes 100% sense since we as american all get 1 free EIN from the government (why?) because some people don't like sharing S.S amongst other reasons..but no one can deny your not connected to your SP via your S.S

Re: Paypal account access has been limited (Tax ID)
 

The thing is people that know how it works don't want to share it. "Ask a tax professional is what they say"...

We all have the same common goal, motive, and end result (facing what the O.P asked about). This topic shouldn't be so taboo...because honestly we all really are striving to face this. Yes its good to spread accounts but its silly not have some power accounts in the mix. Just my 2 cents

Re: Paypal account access has been limited (Tax ID)
 

I understand what you mean but also see it from the other point of view, people here don't want to give you legal advice because EVEN if it's how they do it themselves it might be bad for your case specifically because each situation is different, different tax rates, states, other businesses and incomes etc. So you NEED personal advice for your particular situation. Yeah we might be able to tell you it is RECOMMENDED or most people do it this way etc but some people will take that advice and run with it and when they run into trouble they come back here and complain.

In this particular topic most people will opt for being careful and rather don't advice than give the wrong advice because the consequences could be very bad

Re: Paypal account access has been limited (Tax ID)
 

I understand what your saying. Im just waiting for nasty posts on this thread from senior members..

To shed a little light from my perspective ..I just moved to NYC and as of now I rely on Ebay as pretty much my main source of income. Anyone who lives in the states knows NYC is the most expensive place to live. Say someone gives me bad advice and I get all my accounts limited ...I'm homeless. Whats really the difference when it comes to the IRS? We all never really know our own situations but whenever the word IRS comes up..its taboo.

Now I'm not stupid enough for that to happen. There are certain opinions I value as I have seen them respond continually, and have proven to help with my stealth methods...

I don't even know why I bother trying to change the minds of the people who could shed light to us newbies ..but it won't happen. It's all good. This forum has helped me enough.

Re: Paypal account access has been limited (Tax ID)
 

That's actually off. Yes, IRS accepts your money but it is obliged to make sure the taxes are paid by the name on IRS file. If the IRS do an audit & there is a name difference, they need to cover themselves.


Just to let you know in view of later comments in this thread, paypal has reacted to two different users supplying INACCURATE info regarding their tax details. This info was supplied quite some time ago and unexpectedly, paypal looked into their accounts again. They are limited.

Be aware your nickname may backfire on you and your business plan.
:ranger:

Re: Paypal account access has been limited (Tax ID)
 

Excuse me?

apskin made a directive years ago that it was not, and is not the place for users to hand out tax advice.

This is why users get referred to seeking correct and accurate tax advice.

:mad:

Re: Paypal account access has been limited (Tax ID)
 

It is not that we don't want to be helpful. The problem is, business organization can be a complex thing and different tax laws apply to different types of businesses. State laws also vary. And IRS rules are VERY specific about who CAN and who CANNOT give tax advice. The definition of TAX ADVICE is not completely clear. So, people want to err on the side of caution.

We give the best advice we can where we can. If you need a tax professional, they are easy enough to find. Look up companies in your area that provide tax filing services. Companies like H&R Block, although you want to ideally find a smaller one that is more helpful than they are.

You mentioned that you are 22. It is clear from your statement "we as american all get 1 free EIN from the government (why?) because some people don't like sharing S.S amongst other reasons" that there is much you don't yet understand about the way the system works.

I guarantee you, the IRS did not create EIN's so that you can keep your social security number private. They were created so that EMPLOYERS would have a way to file various taxes and comply with the law. An individual is allowed ONE EIN. Why? Because each legal entity only NEEDS one EIN to report employment. Corporations and LLC's are their own legal entity, so each may have their own EIN. EIN's are ALL FREE. The IRS does not charge for them.

Individuals may need an EIN if they employ household help, or run a sole proprietorship. That is why the IRS allows individuals to have them. It has nothing to do with privacy. Someone might USE IT that way, but that is not what they were created for.

What I am trying to point out is, it is not that we do not want to be helpful. We just don't want to give you BAD advice. We do not know all of the details of your situation, and even if we DID, we are not tax experts, or experts on state law. Nobody is trying to deny you knowledge.

Re: Paypal account access has been limited (Tax ID)
 

make a new pp bro

Re: Paypal account access has been limited (Tax ID)
 

That does not work though.

:doh:

Re: Paypal account access has been limited (Tax ID)
 

yes it would, why wouldn't it? You can use as many paypals as you want with an ebay. the paypal doesnt even have to be under the same name as the ebay ffs lol

Re: Paypal account access has been limited (Tax ID)
 

Becuase of the tax issues and the fact a limited paypal has been attached to that ebay account.

:juggle:

Re: Paypal account access has been limited (Tax ID)
 

There is actually a law in place to prevent companies from using your SS# as a means of Identity, even though they may ask for your SS# , it's your right to protect it and not just give it out to anyone

Re: Paypal account access has been limited (Tax ID)
 

Second that. About 4 years since the law came into place. Knock on wood, my PayPal with my SSN attached was banned back in 06-07.

FYI anyone in US running stealth accounts. You must spread your sales out over the entire year. When you projected sales get too high PayPal will prematurely limit your account like they did the poster so they are not liable for the 1099k law. I keep a spreadsheet and shut my accounts down for the year at about 185 payments received.

Re: Paypal account access has been limited (Tax ID)
 

That's not going to do anything. I have a legit stealth paypal that's had about like 10 different paypals attached to it(to avoid 20k/200 #****IRS), but yeah this is the best route. I don't care if anyone doesn't condone to this, but it's a great idea.

Re: Paypal account access has been limited (Tax ID)
 

Only in your opinion

Do enjoy the IRS doing a tax audit.
:rolleyes:

Re: Paypal account access has been limited (Tax ID)
 

Playing with too much fire on one account

Re: Paypal account access has been limited (Tax ID)
 

MM is most clear and accurate.

Sole Proprietor will only be investigated if paypal physically chooses to, such as, high dollar account(Hard to say how much or little, maybe anything over $30,000 a month, could be less), a spike in disputes, higher dollar transactions, spike in Chargbacks and of course any other problems/concerns paypal has such as a formal called in buyer complain or claims of foo foo, etc..
IF they do investigate, it is YOU/SS doing business as(DBA)EIN. It is a schedule C on your taxes and only you. 100% passes to you after expenses. You are the sole owner.

Now on a Corp or LLC, the members(owners) of the LLC and the Shareholders(owners) of the Corp get payrole and or 1099, to there SS....complete and 100% separation.

I hope this is clear.