Ebay and Paypal SSN Restriction

[wendychen2000us]

Is there any consequence (limit account) if we ignore them when they ask for SSN or EIN when the sales is like what you wrote 100/$7,000?

If people sell expensive items, say $1,000 each and about 10 per month. So you will only have 120 (per year) while it could be $120,000 as dollar amount. I just used an extreme sample. Will Paypal ask for SSN at some point or since you won't reach 200 transaction based on projection, Paypal will neither ask for SSN/EIN nor report you to IRS?

Thank you.

Originally Posted by dallis

My statements are 100% correct, you can follow the URL and read it yourself and decide on your own.

Doesn't say OR. Says AND.

Greenbean point is as usual correct, if they PROJECT your totals will exceed that amount in a year, they usually ask well before you reach that total. I've had them ask at $7000.00 and 100 transactions.

They do that to protect themselves from your total going over the limit by year end and them not being able to get the appropriate documents.

And there are NO 'non-existent' EIN's; if the EIN is ACTIVE ( and it has to be to pass the automatic check PP runs ) that EIN belongs to somebody, somewhere.

Using somebody's EIN or SSN even for a week is identity theft.

Finally, PP and EB NEVER erase anything. That wrong EIN will be in their files until the end of time. Will anything happen? Probably not. But why take the risk?

There's two good reasons not to do things that are wrong:
1. They're wrong.
2. One day they may come back to hurt you.
Choose whichever reason makes more sense to you, the answer is still the same.

[od4]

if i get the request to give them my SSN on a stealth account what should i do? should i just leave the account and never go back on? because i have nothing to provide to them

[dallis]

I've was asked 3 times last year on three different accounts, each time the length of time between the request and PP limit was 7-10 days; if I did not respond in another week they froze PP until the info was provided..

You can file for an EIN number, and provide it to PP, even after your PP is limited/frozen and they will release the limitation; you can get an EIN online at the IRS, somewhere in the forums you can find a link or look it up online.

To use an EIN you will have to upgrade your PP to a business account, which means to start over and verify bank, credit card on file, email, etc.

PP doesn't check the name on the EIN, only checks to see if it is active, so it's perfectly safe.

If you go over the 200 AND 20K limit, they will send a 1099 to the IRS and the name on your account and the EIN won't match, and that's trouble, so don't go over the 20K.

Overall it's best to never come close to being asked, you can run a projection yourself and spread things out across multiple accounts.

[SadSuspended]

If you stop and spread sales? do you mean inactivate the listings, will this affect the limits?

[Salvo]

wendychen, in response to your question about $1000 items but only 10 a month... My main account sells ~$500-$1000 items, but doesn't break 200 items a year.
They have my SSN already (personal account) but I didn't receive a 1099k this year. ~130 items/$87000 were last years totals with no form/report.

I feel the 'projected sales' requests are when people will absolutely sell more than 200 items, but MAYBE will break $20,000. The item amount is more important than dollar amount IMO. My stealths have never received this request, but they stay under both limits.

[rsot]

Originally Posted by wendychen2000us

When they ask for SSN while you are only at 100/7000, did you provide to them? If you don't, will they shut down the paypal or since you have not reached 200/$20,000, Paypal will still allow you to sell?

Thank you.

You can be limited and that is why you follow advice given about EIN, etc.

I also prefer using several accounts to keep amounts/sales low - rotating between all

[martyjump]

Seems to me like the issue with pp accounts getting tax info requests is probably more connected to the dollar amount than the # of transactions. For example, I have operated 30 stealth accounts for 2 years now and the products I sell are in the $15-$25 range. I have had no problems as I haven't had enough sales to hit the 20k limit per pp account (or even come close on most accounts)

[epimetheus039]

Originally Posted by martyjump

Seems to me like the issue with pp accounts getting tax info requests is probably more connected to the dollar amount than the # of transactions. For example, I have operated 30 stealth accounts for 2 years now and the products I sell are in the $15-$25 range. I have had no problems as I haven't had enough sales to hit the 20k limit per pp account (or even come close on most accounts)

And in 1.5 years I have absolutely different experience with about 30 accounts, 2-20$ range items and as soon as they hit close to 200 transactions, SSN request is issued; $ amount never gone over $4,000.

[wendychen2000us]

Thank you so much for your reply. So I guess in this kind of situation they will still request SSN or EIN even if they don't report to IRS.

Originally Posted by Salvo

wendychen, in response to your question about $1000 items but only 10 a month... My main account sells ~$500-$1000 items, but doesn't break 200 items a year.
They have my SSN already (personal account) but I didn't receive a 1099k this year. ~130 items/$87000 were last years totals with no form/report.

I feel the 'projected sales' requests are when people will absolutely sell more than 200 items, but MAYBE will break $20,000. The item amount is more important than dollar amount IMO. My stealths have never received this request, but they stay under both limits.

[wendychen2000us]

Do you reach 200 items/year?

Originally Posted by martyjump

Seems to me like the issue with pp accounts getting tax info requests is probably more connected to the dollar amount than the # of transactions. For example, I have operated 30 stealth accounts for 2 years now and the products I sell are in the $15-$25 range. I have had no problems as I haven't had enough sales to hit the 20k limit per pp account (or even come close on most accounts)

[nghtshd88]

I have an LLC with an EIN and if I recall you can buy whats called a registered agent and address with the business so nothing is linked to your personal name/address.

Wouldn't this satisfy the EIN/address/name etc so you can continue selling past the tax reporting issue?

[dallis]

Registered Agent is just that - a designated agent/contact.

Somewhere, somehow, your name and address are still attached to the LLC somewhere, as the owner of the corporation.

I've dug through 2 and three layers of this stuff to come up with the real owner of a business so that I can litigate against them. You can't hide who you are that way.

[nghtshd88]

Not trying to hide just saying for ebay purposes.

[dallis]

You can use the EIN to sell beyond the limit, BUT when they issue the EIN the EB account name has to match the name attached to the EIN at the IRS.

Meaning if the EB name is 'jumpin' jack flash' and the IRS EIN name is 'x-corp' PP will shut you down.

[WebMax]

Originally Posted by epimetheus039

If you hit 200 transactions OR 20k then you get hit with SSN requirement, which can be replaced with EIN, that can be purchased by Canadians as well - you need EIN LLC that costs 175$ to process and it takes up to a week to get. When you reach 200/20k in Canada you are only required to provide your address which is just filled into a form. You may later on be asked for additional proof of your identity by being asked for your Driver's License/Passport etc that can be photoshopped if needed

Hi,

Your Post really helped me buddy.

I have a USA payPal , recently they asked me my EIN , surprisingly after a month ( i had stopped sending funds in this a/c ) they stopped asking me the EIN/SSN.

Can members pz advise me on this :

I am planning to get a Stealth a/c in Canada / Hongkong or some place where the a/c can be

1. Activated by the help of a VCC / CreditCard ONLY ( No Bank Info needed )
2. There are no 200/2000K Restrictions.

Thank You.

[hapajenn1]

can somebody here answer if amaz0 n demands the EIN + SSN of owner of EIN? Or, this is only an issue pertaining to paypaI?

[notorious Eby]

if you upgrade to a bus acct early and get LLc and ein ready and just use your pp/acct as the bus should this not be enough? would the origional name on the stealth acct really have to match as long as the pp acct business name/ ein , and EB acct upgraded to bus acct with ein matchs ?