Why did I get "Please submit Tax ID information for your PayPal account"? Normal?

[Gooogle]

I've had a 25k/500 eBay Stealth account for about 8 months and recently I got an e-mail from PayPal titled "Please submit Tax ID information for your PayPal account"

Is there anything that triggers this or does PayPal normally send this at the end of the calendar year? My sales this year have been under $10,000 (I will soon break $10k but will mostly like not break $20k this year). What should I do? I am probably below the tax threshold or in the lowest tax bracket because I've been a student with very little income.

How long do I have before PayPal limits my account?

"To comply with the Internal Revenue Service's (IRS) rules, we ask that you
submit your Tax ID number to us as soon as possible. Your Tax ID number is
one of these:

- Your Social Security Number (SSN)
- Your Individual Tax Identification Number (ITIN)
- Your Employer Identification Number (EIN)

We are required to obtain tax ID numbers from all online sellers who
receive payments for goods or services through PayPal. If you do not
provide us with your Tax ID number, your account access will be limited,
and you will be unable to request or receive money. After you provide us
your Tax ID number, your account will be fully functional.

Here's how to submit your Tax ID number:

1. Log in to your PayPal account.

2. A message will appear asking you to update your information.

3. Click Provide Now and follow the instructions.

If you have multiple PayPal accounts, repeat these steps for each account.

We'll use your Tax ID number to send tax Form 1099-K to you and the IRS
when the payments you receive meet the 1099-K reporting thresholds for the
calendar year. For more information, please see our FAQs on the IRS
reporting requirements: www.paypal.com/irs.

We appreciate your help in complying with these IRS rules."

[jakobrockz]

They will send out these warnings if they project that you will possible meet that threshold by the end of the year... although that is strange that they think you will hit it this late in the year.

If you want to be sure and don't want to submit tax info, do not sell anymore on that account until Jan 1st. And when I mean do not sell anymore, I mean absolutely 0 sales.

[Gooogle]

Originally Posted by jakobrockz

They will send out these warnings if they project that you will possible meet that threshold by the end of the year... although that is strange that they think you will hit it this late in the year.

If you want to be sure and don't want to submit tax info, do not sell anymore on that account until Jan 1st. And when I mean do not sell anymore, I mean absolutely 0 sales.

What's the worst that could happen if I continued to sell? I would just have to buy another account, get some feedback and set up a new checking account? I may sell this month quite a bit more than the cost of this account but nowhere near $20k in annual sales. Is $20k in annual sales the amount at which PayPal usually requests tax info?

PS: I recently checked and I'm likely to break $10k this year in total sales. Probably not more than 200 transactions.

[jakobrockz]

If you never plan on reporting and submitting tax info... you might as well start building up a few accounts to spread the sales. Otherwise, with a growing business (assuming), you're going to hit that marker and have to restart next year with a new account anyways. So why don't you start now?

Yes it's 20k

[Gooogle]

Originally Posted by jakobrockz

If you never plan on reporting and submitting tax info... you might as well start building up a few accounts to spread the sales. Otherwise, with a growing business (assuming), you're going to hit that marker and have to restart next year with a new account anyways. So why don't you start now?

Yes it's 20k

I would need to pay for multiple VPN IP's right? Or could I just use one IP from 24vc? Sometimes I go months with zero sales. It's quite feasible that a bunch of people with eBay stores are all using the same external IP address because they use a hot spot...not sure how eBay and PayPal view that though..

I don't really plan on growing eBay as a business. It's just a way for me to get rid of random crap.

[jakobrockz]

Also, has this been your first warning? This is crucial. I am positive they give you 3 warnings, and on the third one they suspend your account.

If it is only your first one I would continue to sell until the second warning. That make take literately just a day or two, or maybe two weeks.. who knows.

[SaiJin]

Once you get a demand from them there's no way you can just ignore it and think itll go away next year. So you have to do something about it.

Otherwise you'll lose your account and I'm sure you don't want that.

[Gooogle]

Originally Posted by jakobrockz

Also, has this been your first warning? This is crucial. I am positive they give you 3 warnings, and on the third one they suspend your account.

If it is only your first one I would continue to sell until the second warning. That make take literately just a day or two, or maybe two weeks.. who knows.

First warning. Is it better to just buy a new account? It's a $25k/500, about 8 months old.

[Irule22]

Just remember, IF you DON'T surpass 20k AND 200 transactions, you won't receive a 1099, so end of January of the following year, your account will be good to go again to sell. It's a pain in the butt, but better than just letting the account go....

[Lucynda]

All there wanting is a TAx ID number. It's free. Just go to https://www.irs.gov/businesses/small...ber-ein-online. You will put for real information in when signing up for the TAx ID along with whatever business name you plan to give to PayPal. Make sure the business name on the Tax ID and Paypal are the same. If you don't give them this information they will eventually lock the account and you won't be able to sell anything else. When it happened to me it took 3 days before they locked the account but once I put the information in they unlocked it right away. If you don't want to pay taxes on the money you make just open multiple stealth accounts and spread your sales out across them.

[SaiJin]

Originally Posted by Gooogle

First warning. Is it better to just buy a new account? It's a $25k/500, about 8 months old.

Buying or making an account based on the stealth guide is entirely up to you.
It really depends on your needs and TIMING.

Some people want to sell asap so they bought the accounts and at the same time study the guide.

Some people have more time and they take their time creating their own accounts.

Some people do both. (I'm in this category) . I do this to maximize my present and future potential as well as spearing the sales to prevent what happened to you.

[newjerseymax]

It’s so close to end of year that most likely by January 1st it will reset and you will be good to go.

[yankee]

Lots of horrible information in this thread.

If you cross the threshold, you wont be able to collect any more funds until after the first of the year. No banning or anything like that.

The WORST case scenario is you cant collect money for the remainder of a tax year no matter how many notices or if you have a big red banner at the top of your page.

[Gladiator]

Originally Posted by yankee

Lots of horrible information in this thread.

If you cross the threshold, you wont be able to collect any more funds until after the first of the year. No banning or anything like that.

The WORST case scenario is you cant collect money for the remainder of a tax year no matter how many notices or if you have a big red banner at the top of your page.

I've received this in the past, got reminder emails, and despite not taking any more payments after the third reminder the account was locked until I gave them an EIN, even after the first year reset. Not every time, but it has happened to myself and others who have posted here.

[yankee]

Originally Posted by Gladiator

I've received this in the past, got reminder emails, and despite not taking any more payments after the third reminder the account was locked until I gave them an EIN, even after the first year reset. Not every time, but it has happened to myself and others who have posted here.

Locked? Sure......But not limited. No funds held etc.... If you called in, you did not have to add a Tax Id and most likely could have collected funds January first even with the big red banner at the top.

Thanks for clarifying everything I stated LOL

[Gladiator]

Originally Posted by yankee

Locked? Sure......But not limited. No funds held etc.... If you called in, you did not have to add a Tax Id and most likely could have collected funds January first even with the big red banner at the top.

Thanks for clarifying everything I stated LOL

I could not send or receive money. After the third email it wasn’t a big red bar at the top, but a limited message when you signed in. Calling didn’t help, I had to provide the tax id. Which was fine as I still have and use this account, but in my situation once I got the third reminder the account was toast unless I turned over an EIN or SSN.

[yankee]

Originally Posted by Gladiator

I could not send or receive money. After the third email it wasn’t a big red bar at the top, but a limited message when you signed in. Calling didn’t help, I had to provide the tax id. Which was fine as I still have and use this account, but in my situation once I got the third reminder the account was toast unless I turned over an EIN or SSN.

You became limited for tax ID? You were not able to withdraw funds? That is very interesting. Did you exceed the 20K and 200 items? That would be the only thing I can think of.

[Gladiator]

Originally Posted by yankee

You became limited for tax ID? You were not able to withdraw funds? That is very interesting. Did you exceed the 20K and 200 items? That would be the only thing I can think of.

Nope. It was a little over $7000 and 100 items. May have been a fluke as this is the only occasion I have experienced that, but once I got the request and didn’t respond by the third message a block popped up when you signed in and said I could not send and receive money until a tax id was provided and the account would be permanently limited if it wasn’t provided within a certain period of time, which I believe was 10 days.

This was around two years ago, so maybe it was just an oddity but it’s always a good idea to be aware of any potential issues. If they send numerous reminder emails quickly, they may need a tax ID like I did. As another poster said above if they send them quickly they may get the third time lock out.

[dicsolovag]

Question for sake of money transfer of an 'about to get limited' PP account:
Does Paypal have the ability to instantly verify the SSN/EIN one enters?
What I mean is that if an account gets limited, they will not lift the limit until a SSN/EIN is provided.
A while ago when my 1st PP account got limited, I provided them an EIN and the limit was instantly removed. I don't think they were able to cross-check the newly created EIN as it had been just created.
Surely, after the IRS tells them that the provided SSN/EIN is no good, the account would be limited, but this way funds could be withdrawn from a limited account?

[shani1212]

Hi there, I have the same situation. PayPal asking for tax info. account is old started with low sale but from Nov. - Dec. it is little over 7K. PayPal asking for SS #, EIN or ITIN. because of sudden high volume of sale PayPal also asking for proof ID/ SS/ and invoice. Does any one of you know any good site where I can make it and submit to PayPal? They give me till 12/27/17 to upload required docs. What should I do guys? Your help will be highly appreciated...

Thanks

[rsot]

Originally Posted by shani1212

Hi there, I have the same situation. PayPal asking for tax info. account is old started with low sale but from Nov. - Dec. it is little over 7K. PayPal asking for SS #, EIN or ITIN. because of sudden high volume of sale PayPal also asking for proof ID/ SS/ and invoice. Does any one of you know any good site where I can make it and submit to PayPal? They give me till 12/27/17 to upload required docs. What should I do guys? Your help will be highly appreciated...

Thanks

Are you in the USA and able to get an EIN? Just clarifying

[shani1212]

Originally Posted by rsot

Are you in the USA and able to get an EIN? Just clarifying

Yes, I'm in the USA. Your help will be highly appreciated.