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Payment Processing Discuss payment processing with PayPal, Stripe, Authorize.Net, Bitcoin and other processors for your products and services.

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Old 03-05-2011
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Default Does Google Checkout also report to the IRS?

I am using google checkout and moneybookers as forms of accepting payments. I am aware that paypal is reporting to the IRS of our earnings when we reach a threshold. Is anyone aware of either google checkout or moneybookers if they also report our earnings?

Thanks!
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Old 03-05-2011
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All merchants will be reporting to the IRS if you reach whatever limit it is the merchant feels necessary to report you that includes the ones you've mentioned.
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Old 03-05-2011
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ANY Payment Processor (and merchants like Amazon that collect money and disburse it to you ARE considered payment processors) MUST report your gross sales to the IRS if your account(s) with them take in more than $20,000 AND 200 transactions.

So, YES, Google checkout will report if your gross sales meet that threshhold. So will ANY merchant account provider, PayPal, Amazon, CCNow, Moneybookers, etc.

There is NO payment processor that has a magical exemption from this requirement.

But there are many people who are misunderstanding this. You will only owe the taxes on your PROFITS from selling, NOT on your gross sales. So, if PayPal reports that they paid you a total of $30,000 and your profits were $5,000 from those sales, you would only owe the taxes on the $5,000 in profits, NOT on the $30,000 gross.

This is also NOT a new tax. Taxes have ALWAYS been due on profits made from selling, whether online or offline. The only thing that is changing is that the IRS is now requiring the reporting.

As long as you are paying your taxes, there is nothing to be afraid of.
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Old 03-05-2011
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To back up jeffweico's informative post, if you earn monies from anywhere, you need to pay taxes.

It is imperative you seek qualified professional advise to keep in good standing with the IRS
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Old 04-07-2011
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Quote:
Originally Posted by jeffweico View Post
ANY Payment Processor (and merchants like Amazon that collect money and disburse it to you ARE considered payment processors) MUST report your gross sales to the IRS if your account(s) with them take in more than $20,000 AND 200 transactions.

So, YES, Google checkout will report if your gross sales meet that threshhold. So will ANY merchant account provider, PayPal, Amazon, CCNow, Moneybookers, etc.

There is NO payment processor that has a magical exemption from this requirement.

But there are many people who are misunderstanding this. You will only owe the taxes on your PROFITS from selling, NOT on your gross sales. So, if PayPal reports that they paid you a total of $30,000 and your profits were $5,000 from those sales, you would only owe the taxes on the $5,000 in profits, NOT on the $30,000 gross.

This is also NOT a new tax. Taxes have ALWAYS been due on profits made from selling, whether online or offline. The only thing that is changing is that the IRS is now requiring the reporting.

As long as you are paying your taxes, there is nothing to be afraid of.
One thing i dont really get.. y need to report it.. hello its a STEALTH accnt rite, meaning ⊗⊗⊗⊗ name, bank info, cc, address etc.. y need to report if its a STEALTh
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Old 04-07-2011
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Quote:
Originally Posted by Gman91189 View Post
One thing i dont really get.. y need to report it.. hello its a STEALTH accnt rite, meaning ⊗⊗⊗⊗ name, bank info, cc, address etc.. y need to report if its a STEALTh
If any payment processor - which includes PayPal and Amazon - feel that you will reach the $20,000 / 200 itesm threshold, then they will request that you provide your SSN or EIN. If you fail to do so, they will suspend your account.

Amazon has indicated that they will require this on ALL acounts, regardless of volume.

This means that stealth will change.

But regardless, you should be paying taxes on any profits you make. Stealth is legal, tax evasion is not.
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Old 06-02-2011
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oh so paypal will ask for SS number when you hit 200 sells. oh well there goes my stealth account
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