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If I refund $2.5k from PayPal will I get limited??
 

I have TWO issues here.

1st Issue: I have a Stealth PayPal business account (EIN etc etc). I have already in the past sent PayPal a stealth ID, invoices, EIN, Business info etc, no SSN of course. I passed the $20k + 200 items mark in PayPal. I crossed it by about $1800 but I only have $1000 in my PayPal balance. I need to transfer about $1k-$1.5k into my PayPal to lower my gross sales for the year to $19800-$19300 range to be safe. Which leads to my 2nd issue.

2nd Issue: How can I safely transfer this money to my PayPal account without raising flags? PayPal asks to confirm my business address, Name, Date of birth and last 4 of SSN. I did give them all this info when I created my business account. Is it safe to provide it again? I can give the money to a friend then have them transfer PayPal to PayPal. Is it likely that PayPal will limit my account if I transfer about $1.5k from my bank to my PayPal balance then refund customers just to put me back under $20k?? Or... Will they still send to the IRS because I had originally sold $20k for the year and not care if they were refunded?? Is it worth the risk of doing this?

Re: If I refund $2.5k from PayPal will I get limited??
 

It doesn't work that way, you can't go over the $20K and then refund enough to "put you" under $20K.

Re: If I refund $2.5k from PayPal will I get limited??
 

MM78 is correct. You made the amount regardless of refunds.

It’s almost the end of the year so just leave the account alone.

Re: If I refund $2.5k from PayPal will I get limited??
 

Same with eBay. Even if you cancel sales and refund, those sales STILL count towards your limits. They are booked sales nevertheless.

Re: If I refund $2.5k from PayPal will I get limited??
 

You cannot just refund it lol, as much as it's a clever idea.

The best thing you can do now is stop selling on it, use your back up accounts .

Re: If I refund $2.5k from PayPal will I get limited??
 

Get another account and leave that one alone simple :)