200/$20,000 annual limits... careful! 2016 Isn't that far off...

[NewYork]

I just read two threads where people were talking about how they put their account in a basket and pushed it out to sea because they went over the 200/$20K limits... That we're this close to the end of the year (90 days or less) isn't it worth the time and effort to keep track of these numbers and putting the account on standby until Jan 1? WAY easier than starting over, everything is already set up and verified, and you even get to keep your feedback. Is there a reason that people just let their accounts go and start over? Or did I just happen to read the threads that were written by the few who don't keep track of this?

I have been adding things up lately, and have been switching the high dollar items to the high quantity accounts, and vs versa, so the limits in both categories are safe, and am slowing things down on those accounts so that on Jan 1 the accounts are still going and the count (both quantity and $ amount) is back to zero.... I can understand how it doesn't seem urgent in May, but since we're so close to 2016, I recommend those who sell a lot to add things up and watch you don't go over the limits... I don't think the info request goes away after the 1st of the year, does it?

[martyjump]

Originally Posted by NewYork

I just read two threads where people were talking about how they put their account in a basket and pushed it out to sea because they went over the 200/$20K limits... That we're this close to the end of the year (90 days or less) isn't it worth the time and effort to keep track of these numbers and putting the account on standby until Jan 1? WAY easier than starting over, everything is already set up and verified, and you even get to keep your feedback. Is there a reason that people just let their accounts go and start over? Or did I just happen to read the threads that were written by the few who don't keep track of this?

I have been adding things up lately, and have been switching the high dollar items to the high quantity accounts, and vs versa, so the limits in both categories are safe, and am slowing things down on those accounts so that on Jan 1 the accounts are still going and the count (both quantity and $ amount) is back to zero.... I can understand how it doesn't seem urgent in May, but since we're so close to 2016, I recommend those who sell a lot to add things up and watch you don't go over the limits... I don't think the info request goes away after the 1st of the year, does it?

Not sure what happens after the calendar year. One of my stealths got hit with the tax id request and I just let the account go... So hopefully next year I can get it back but I don't think so... real shame because the account was a powerseller.

[jeffweico]

People HAVE gotten through it this way before, but that is NOT a guarantee that they will keep operating this way. PayPal has a system in place that has to comply with the IRS rules. If accounts go over and PayPal did not take reasonable steps to secure the information, then THEY could be held liable for any taxes due. And there is no way that they will let that happen.

There is no harm in an account going over. You can always add an EIN. But if you don't want to do that, then just keep your sales steady, or stop them if you think it will trigger the request. Because PayPal does not ask you when you are at 400 sales and $19,999 in revenue, they will ask you WAY before that happens. They have an algorithm in place to project your sales and if it looks like there is a POSSIBILITY that you will go over, then they ask.

Nobody knows exactly how the algorithm has been written, but I would guess it is based on your previous sales during the year, your monthly volume and your velocity. So, If you start at $200 in January, then $500 in February, the $1500 in March, you COULD get hit with the request even though you are nowhere close to $20,000. Those numbers are just what I used for an example, they are not a real life example. I'm just saying I believe that how much your sales increase probably plays a role as well.

[empirestate]

when you are 90% near the boundaries, you stop selling simple as that.

[yankee]

Unless 2016 changes, everything resets sometime in January on tax limited accounts.

All other accounts get a reset to $0.00 and 0 items on January 1st.

[Harvin]

Originally Posted by yankee

Unless 2016 changes, everything resets sometime in January on tax limited accounts.

All other accounts get a reset to $0.00 and 0 items on January 1st.

I wish. My ebay account increased from 100/$5,000 to 150/$15,000 but in the same day I got the 200/$20,000 limit so I wasnt able to sell on that account. I wish it will be reset on january 2016 because thats a top rated seller account.

[Harvin]

Originally Posted by martyjump

Not sure what happens after the calendar year. One of my stealths got hit with the tax id request and I just let the account go... So hopefully next year I can get it back but I don't think so... real shame because the account was a powerseller.

What do you mean you let the account go? Did you close the ebay account?

[Maliquest]

Im thinking about adding a different paypal account to my main Ebay account. Will just create a new legit paypal account and switch em out.

[dealagreeproceed]

Originally Posted by Maliquest

Im thinking about adding a different paypal account to my main Ebay account. Will just create a new legit paypal account and switch em out.

only bad thing is if 1 goes down they all go down like dominos

[aking]

I just sell like crazy until they won't let me. There's always another account waiting that I can sell on...