Paypal & the IRS
Does anyone know if Paypal shares/gives your earnings info to the IRS if they have your SSN and/or if you have the Paypal ATM debit card??
Because I had a couple thousand dollars or so going through my previous, aged from 2004 Paypal account, that as far as I know, has my SSN on file, and for which I had/have the Paypal ATM debit card - before the whole account was limited until I give them all the supplier docs, business info, etc.
Since I am in the process of getting a merchant account (possibly offshore) and am going to just use throwaway stealth Paypal accounts in combination with Cart-Manager until then, having my 2004 Paypal account limited isn't such a big deal.
But I'm concerned whether Paypal will report any earnings/money that came into that account to the IRS.
To the best of my recollections, it wasn't more than a couple thousand or so at most, a majority of which went to the costs of those items itself and the rest of the extremely small profit (when and if there was any!) which I spent/withdrew/sent out again that instant.
However since its such a small and inconsistent amount, I never reported it as income for taxes.
So my fear is that if Paypal reports it, there'll be a problem!
Does anyone know whether Paypal has started reporting income to the IRS, and if so, what is the income threshold (I'm assuming that they don't report for a few dollars, or a few hundred or so, here and there) at which they start reporting the money to the IRS??
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