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-   -   Paypal Tax ID Number Request HELP (https://www.aspkin.com/forums/paypal-limited/51523-paypal-tax-id-number-request-help.html)

vigilantex69 10-07-2012 08:23 AM

Paypal Tax ID Number Request HELP
 
Ok so I am a stealth vet, and have spread my sales over three accounts over the past year as to not get limited on anything and it has worked really well. Much to my disappointment today I got this email from Paypal.
We're asking for your tax ID number due to new IRS rules. Your tax ID
number is one of these:

- Your Social Security number
- Your Individual Tax Identification Number
- Your Employer Identification Number

We'll use your tax ID number to send tax Form 1099-K to you and the IRS
when the payments you receive exceed both of these milestones in a calendar
year:

- $20,000 in gross payment volume for goods or services
- 200 payments for goods or services

Now my question is this. It doesn't appear the Paypal account is limited yet? How long before it is fully limited? Can I still withdraw the money in it there is around $500 in it? What do I have to do here? I currently have two auctions still going can I still send and receive payments? Ship things? I figured I would log in and it would be limited and the money frozen, but it doesn't appear so.

This is the first account I have ever had hit with the IRS thing so I am not sure what to do. Is this a standard case of the Paypal and ebay account are junked and I need to just move on to the next? Is there anyway to get an EIN number for a fully stealth account? Just wondering again this is the first time it has happened to me. Any steps would be appreciated.

AmazonStealth 10-07-2012 08:39 AM

If you are a vet than you should have been prepared for this, as it is discussed multiple times on a daily basis.

vigilantex69 10-07-2012 08:41 AM

I mean I am a vet that has spread it out over 3 accounts over almost three years to avoid this. I HAVE done it correctly, but eventually it is inevitable. This is the first time it has ever happened so again, its not in the stealth book that I purchased 6 years ago and these forums are so vague on what to do if anything at all.

rsot 10-07-2012 09:03 AM

/quote

How long before it is fully limited? Can I still withdraw the money in it there is around $500 in it?

Unless limited in any means, you can still operate but it's only matter of time - I cant say exactly how long but anywhere from 2-4 weeks is a workable figure.

vigilantex69 10-07-2012 09:05 AM

Ok then I should definitely withdraw the money immediately. Also, what about just holding off on using the account to the new year? Would that roll it over and avoid it?

GreenBean 10-07-2012 09:07 AM

You can not avoid the earning money & needing to pay taxes....

Dont forget that.

:juggle:

vigilantex69 10-07-2012 09:10 AM

Ok so again, is there anything I can do? I would pay taxes on it but its a stealth account? Just wondering if there is anything I can do to prolong the account or if I should just move on to my others.

bballaw1 10-07-2012 01:49 PM

I personally have 5 of my stealth accounts asking for this information. I received my first request in April and that account has not been limited yet. None of my others have been either. Most of my accounts just sold over the 200 mark but are no where near the $20,000 mark.

Moral of the story, there really is no clear answer for when a paypal will get limited.

makaveliagain 10-09-2012 02:41 AM

It is a case by case basis. But the ideal situation would be to stop selling once you are between 17-18k. Also if you rack up too much in sales very quickly looking like you are going to go way over for the calendar year they are more likely to limit you for good. I do know one person who has paypal limitations on one account and they can withdrawal the funds they can no longer receive payments anymore. It is anyone's guess if it will be reset at the beginning of the year.

hercheys 10-09-2012 10:04 PM

I would suggest to get an EIN number and upgrade to a business account. Anybody can get a tax id online and PayPal can only match the Company name and Business address attached on the IRS file. (possibly the name but not business there)

This way it's a legal process, take extra precautions, as you said your a vet use your instinct. My 2˘ here, I would move $419.99 with CCNOW of the 500 on there right away but this tax ID law which all online ecommerce acquirers is are taken into effect and they are strictly.

jeffweico 10-09-2012 10:43 PM

I wouldn't delay this for too long. Accoring to the IRS rules, they must EITHER collect your tax-id information OR start withholding 30% of your gross sales as soon as the threshhold is reached. Last year, the IRS delayed that requiement for a year because a lot of people were complaining there was too little time to implement everything. They are VERY UNLIKELY to delay that requirement again.

PayPal will not likely start withholding money from people, it is more liikely they will just stop the account from receiving funds.

Getting an EIN is very easy, but you might need some advice from a tax professional on how to structure yourself as a business. It is not that difficult, but everyone's situation is different and what works for one person will not necessarily work for everyone.

shoot2kill 10-10-2012 12:14 AM

...Why not make another paypal account and close that one? I do that often and when PayPal start withholding funds I will create an EIN for them if required.

makaveliagain 10-10-2012 03:35 AM

I am assuming it is your Real name on the Paypal otherwise the EIN comment is absolutely wrong. If you get a 1099k from paypal after adding and EIN and it is some bogus name you will be likely to get and audit and or have questions about employees, Social Security & Medicare withholdings for them etc.

hercheys 10-10-2012 01:37 PM

The EIN tax id number can only get you so far, but you should know that anybody within your business structure could use the EIN as a user or if authorized by the ower (you).

I worked with hundreds of business clients helping their processing needs at TD, and even if you are dba sole- proprietorship, home business or partnership if you authorized per se your accountant, payroll company, wife or anybody to file irs documents for your business structure and authorized by you; then theres your answer.

You should not get audited as long as you dba name's register within that body of your company. Now doing this over and over and having 3-6 ein floating around will get you audited fast! - So keep it simple, the IRS is no joke and if this is for your business but your using mismatched names does not mean you will be in trouble as long as you operate legally within the taxing brackets; tax id in your name and business ofcourse.

Ballsack 10-10-2012 08:09 PM

This seems like a play for paypal to get your SSN. I can understand asking for an SSN if you make 20K, but 200 items? Give me a break! For some people that could just mean 1k.

Does anyone know what the rules are if you just collect money thru paypal but it's unrelated to ebay sales? Does it still have the 200 item and 20k limit? I know I have a 3 year old paypal that has gone past both limits and I was never once asked for an EIN.

vigilantex69 10-11-2012 07:24 AM

I think what I am going to do is hold off, sell one more bigger item on the account then let it sit till the new year. See if that works. It would be too my advantage to see if it rolls over.

TeamUp 10-30-2012 09:49 AM

Quote:

Originally Posted by hercheys (Post 382721)
I would suggest to get an EIN number and upgrade to a business account. Anybody can get a tax id online and PayPal can only match the Company name and Business address attached on the IRS file. (possibly the name but not business there)

This way it's a legal process, take extra precautions, as you said your a vet use your instinct. My 2˘ here, I would move $419.99 with CCNOW of the 500 on there right away but this tax ID law which all online ecommerce acquirers is are taken into effect and they are strictly.

Do you think they actually take the time to match up the business EIN with your name and address that is on your paypal?

Futuremogul888 11-02-2012 02:15 PM

Quote:

Originally Posted by TeamUp (Post 388475)
Do you think they actually take the time to match up the business EIN with your name and address that is on your paypal?

Definitely not on a business account because you are saying the account is owned by the business (so they only have the right to check on the business) while the person on the account could just be someone you hired to run the paypal account or he could be an elected officer within your company. The only person listed with the EIN is the tax liability partner or sole owner (shareholder).

If you are talking about using it in place of a social on a personal account, I'm positive they do. If the IRS is asking them to collect this information, they are providing them with access to a system to do so or paypal is immediately providing the information to the IRS for verification. That is irrelevant because I doubt anyone here is stupid enough to provide a false social to Paypal.

I have been championing the idea of upgrading to a business account and providing an EIN to meet this requirement but let me be very clear on one point:

You must identify the account as a business account with the correct business name. You must not try to provide an EIN when your account is a personal account. This will get you in a lot of trouble.

See my thread from a few days ago:

http://www.aspkin.com/forums/subscri...porations.html

vigilantex69 11-02-2012 06:29 PM

I have one more big item I am going to sell this calendar year. Hopefully make a few hundred on it then bounce until the new year on this account. I will let you guys know what happens. I am really hoping I can start again new in January and be ok with it. However, I drained the Paypal account accordingly, so if it goes it will go without problems.

kenshintr 11-02-2012 06:50 PM

Quote:

Originally Posted by vigilantex69 (Post 389686)
I have one more big item I am going to sell this calendar year. Hopefully make a few hundred on it then bounce until the new year on this account. I will let you guys know what happens. I am really hoping I can start again new in January and be ok with it. However, I drained the Paypal account accordingly, so if it goes it will go without problems.

Couldn't you create any stealth to spread out the sales?

kenshintr 11-02-2012 06:51 PM

Quote:

Originally Posted by Futuremogul888 (Post 389625)
Definitely not on a business account because you are saying the account is owned by the business (so they only have the right to check on the business) while the person on the account could just be someone you hired to run the paypal account or he could be an elected officer within your company. The only person listed with the EIN is the tax liability partner or sole owner (shareholder).

If you are talking about using it in place of a social on a personal account, I'm positive they do. If the IRS is asking them to collect this information, they are providing them with access to a system to do so or paypal is immediately providing the information to the IRS for verification. That is irrelevant because I doubt anyone here is stupid enough to provide a false social to Paypal.

I have been championing the idea of upgrading to a business account and providing an EIN to meet this requirement but let me be very clear on one point:

You must identify the account as a business account with the correct business name. You must not try to provide an EIN when your account is a personal account. This will get you in a lot of trouble.

See my thread from a few days ago:

http://www.aspkin.com/forums/subscri...porations.html

this is what I'm planning to do, I already registered ein on my business name. Just waiting for my ebay account to be more solid before I upgrade my pp to business. Or do you suggest I should upgrade right now, thanks.

Futuremogul888 11-02-2012 07:29 PM

I say you give it a little time and build up some feedback. This way you look like someone who started on ebay selling as a hobby and realized there is a business in it. I think there are two ways you can play it initially:

1) The above mentioned hobby that you decided to turn into a business. This is when you are transforming a personal stealth account to a biz stealth account to meet the IRS requirement

2) You initially set everything up as a business because you are already a legitimate brick and mortar biz that is trying to expand into the online selling/ebay realm. You start out with accounts that already meet the IRS requirement by being biz accounts with the EIN provided from the very beginning.

kenshintr 11-03-2012 12:03 AM

Sound good, thanks. Thinking I'll stick with method 1 for now :D

kissingger 11-16-2012 12:54 AM

can anyone tell me how to obtain an EIN. I am not US citizen. Thank you!

dallasreed 11-23-2012 01:05 PM

Quote:

Originally Posted by kissingger (Post 393828)
can anyone tell me how to obtain an EIN. I am not US citizen. Thank you!

It is possible but you will have to call the USA IRS in order to do it and it may take a month or so.

vigilantex69 11-23-2012 11:53 PM

Quote:

Originally Posted by kenshintr (Post 389694)
Couldn't you create any stealth to spread out the sales?

I have another account I am using, I don't mess with EIN's though, if it gets permanently limited I will just dip out on it.

Does anyone think or have any idea if the account thing resets itself after a calendar year? Like its 200, $20,000 per calendar year?

Someone should really call Paypal and ask them that, find someone that knows. That would be some SERIOUSLY smart stuff to find out.

waterproof 11-24-2012 12:05 AM

So correct! You may sell 1000 items, but do not surpass the dollar amount. As a matter of fact, I would play it on the safe side and stay a couple K below the 20K stated.




Quote:

Originally Posted by GreenBean™ (Post 382147)
You can not avoid the earning money & needing to pay taxes....

Dont forget that.

:juggle:


vigilantex69 11-25-2012 05:08 PM

I'm tellin ya, figuring out if the dollar amount and item amount is per year will be a huge addition to the Stealth Guide. So if you get close towards the end of the year you can just stop selling until the new year.

I am not sure how it works though.

vigilantex69 12-18-2012 04:24 PM

Just sold another $400 worth of items, no full limitation yet.

Hoping that come the beginning of the year it rolls over and lets me keep selling.

Anyone have any luck with the new year and new tax season?

Roscoe 12-19-2012 05:58 AM

Quote:

Originally Posted by vigilantex69 (Post 402298)
Just sold another $400 worth of items, no full limitation yet.

Hoping that come the beginning of the year it rolls over and lets me keep selling.

Anyone have any luck with the new year and new tax season?

Please keep us updated.

Thanks

user3657 12-19-2012 09:33 PM

When you account gets limited for not updating ein/ss info. Is all that is needed to get going again is to upload this info?

vogeltron 12-21-2012 03:43 AM

I just got the full limitation on mine. At 19k exactly. Can't receive or close my account. I hope it resets the first of the year. But I doubt it. My advice would be stop at like 18k and try to spread your sales throughout the year.

incniu 12-27-2012 10:13 PM

Just spread the sales across many accounts!

New accounts have 10/1000 limit.... so each year each account will earn you at least $12000; 12K is very safe for Ebay and Paypal..

and second year, do the same..

Just create 10- 100 new accounts...

incniu 12-28-2012 10:37 AM

Right, this is a right way to do..

Quote:

Originally Posted by shoot2kill (Post 382753)
...Why not make another paypal account and close that one? I do that often and when PayPal start withholding funds I will create an EIN for them if required.


vigilantex69 12-29-2012 01:17 PM

Quote:

Originally Posted by incniu (Post 404930)
Right, this is a right way to do..

Wait close, the Paypal account?

illusioneclipse 12-31-2012 02:27 AM

I too would like to know what happens? Please let us know if the paypal message that pops up each time you log on goes away or whether they limit your account.

I had the same message that was sent to me. I am nowhere near the 20K (probably near 4k?) in sales but at 171 in sale transaction. However, now Paypal wants me to supply a SSN. I wonder what will happen if I just let it sit for a while without giving them my SSN?

zoneout 12-31-2012 02:35 AM

Good question. pp needs the ss# to comply with irs regs for the 1099K. Since they cannot do a withholding on your funds they will probably suspend the acount for policy violation. Really what other choice do they have.

Packattack12 12-31-2012 02:41 AM

Quote:

Originally Posted by illusioneclipse (Post 405962)
I too would like to know what happens? Please let us know if the paypal message that pops up each time you log on goes away or whether they limit your account.

I had the same message that was sent to me. I am nowhere near the 20K (probably near 4k?) in sales but at 171 in sale transaction. However, now Paypal wants me to supply a SSN. I wonder what will happen if I just let it sit for a while without giving them my SSN?

Don't sell any more you are getting really close to the 200 mark. Even tho it's supposed to be 200/20,000.

Let it sit until the New Year (a day from now) and see if it resets. It should.


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