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EIN - what info needs to match up?
 

If PayPal requests TIN and you want to provide EIN for a business account, what kind of info can PP glean from the EIN you provide? Do they just check to see if the EIN exists? Do they try to match it to the address/business name on file? Etc

Re: EIN - what info needs to match up?
 

It's verified whenever they send out a 1099 for your tax ID for the first time. If the IRS rejects it then your account is closed. If the business name is wrong they have you fill out a W4 to correct the error.

Re: EIN - what info needs to match up?
 

So basically everything needs to match? That sucks

Re: EIN - what info needs to match up?
 

No, not everything. The address on your account/1099 is irrelevant. As long as EIN + business name are correct when your 1099 is sent out then you should be good. I've been running a few years with those being the only correct details on my accounts.

Re: EIN - what info needs to match up?
 

I see. Some more questions:

- Does PayPal business name need to match eBay business name?
- If you have an eB biz account, can you safely change the business name on there without raising any flags? To match the name you will use for PP/EIN
- do PP transfers to bank appear in the business name or personal name once you've updated to a business PP account?

Re: EIN - what info needs to match up?
 

Your EIN number needs to match your EIN business name.

Paypal/ebay names are irrelevant. When you upgrade to a business account, they then use your Business name from your EIN.

The previous paypal name is essentially gone from that account.

Re: EIN - what info needs to match up?
 

Yankee's post is accurate but I wanted to add a few things.

- It's really not even necessary to upgrade your eBay to business - just your Paypal. My best combo is a personal eBay + business Paypal and it does just as well as my business eBay + business Paypals. 1099 is sent from Paypal so the status of your eBay account is irrelevant.
- Yeah but like I said there's not any actual reason to convert your eBay to business. Make sure you have the phone used to create the account if you do try changing your eBay business name.
- Business name.

Re: EIN - what info needs to match up?
 

Get your terminology correct.

TIN is for foreign nationals who can't get a SSN.

EIN is an Employer Identification Number.

PP only only verifies the number is Active/Valid.

IF they issue a 1099K a copy goes to the IRS, at that point if the IRS can't match the given info they kick it back to PP and PP comes back to you.

You have a chance to correct it, after that you're toast.

Re: EIN - what info needs to match up?
 

Just to add on and hopefully prevent someone from getting scared, the IRS only verifies EIN + business name. It's perfectly fine for the 1099k sent the the IRS to have a stealth address - it doesn't need to match the address the IRS has for your business/yourself.

If when Paypal sends your 1099k your business name doesn't match up to your EIN, they're fairly generous about allowing you to fix the error. They send you a W9 to fill out (my previous post saying W4 was wrong) and give you 45 days to submit it. If they can't verify you after the W9 then you're done.

It's important to note the type of business you setup with the IRS in the beginning is a major factor here. If you get an EIN for a single-member LLC you'll be unable to complete the W9 if you're ever sent one. For a single member LLC they require the name of the person and/or business, and not just the business name as they do with other organization types. That's why you have to lie about your organization type if you upgrade your Paypal to business with a single member LLC EIN. This is exactly how I lost my best Paypal last year. I made a slight error on my business name so I was W-9'd. Since my LLC was single member the W-9 would not accept just my business name - it wanted my full legal name also. So I couldn't complete the form and lost the account.

As long as you give them accurate information when you upgrade, this shouldn't be a problem for you. Something to be aware of though.

Re: EIN - what info needs to match up?
 

Take phazOrz's comments to heart.

I haven't gone over 20K on a single PP in years, I always switch to another account before I hit the limit, but his comment is obviously experience talking.

Re: EIN - what info needs to match up?
 

isn't it 200/20k? So yer just running to 190 items sold or less than 20k?

Re: EIN - what info needs to match up?
 

I dont think that's right. My understanding is a TIN is an umbrella term for the different types of tax identification numbers out there (SSN, EIN, etc). I think the ITIN is for foreign nationals (what you're referring to)

https://www.irs.gov/individuals/inte...on-numbers-tin

I dont think it's that clear cut. PP issued me a TIN request at like 3/4k in sales... my understanding is that they sometimes project your sales going forward and if you're looking like you'll exceed 20k, they'll issue the request to you. 1.5k/month annualizes to about 18k so to me that's the upper limit... would love to hear some vet input on this though

Re: EIN - what info needs to match up?
 

Also, hey Dallis, I'm just wondering why you choose to go this route (sub 20k on multiple accounts) as opposed to going over 20k on a single account. I'm trying to figure it out which route would work better for me. I assume the reason is to spread risk across multiple accounts in case ebay starts swinging the ban hammer? But it also forgoes the possibility of having one super awesome account as your main one (some accounts always seem to outperform others in my experience)

Re: EIN - what info needs to match up?
 

https://www.irs.gov/businesses/small...ber-ein-online

Is this the right place to sign up for an EIN #? It's saying the service is unavailable when I try, but maybe it's cause it the weekend? Idk

Re: EIN - what info needs to match up?
 

l

That's the right page. Read the notice at the very top. The application is only available on weekdays from 7AM-10PM. Weird that a website application has hours - but true.

Try again now lol

Re: EIN - what info needs to match up?
 

Kirkland, I just had an 8 hour long class today, part of which reviewed this exact subject, the ITIN is ONLY for foreign nationals.

You have to make a special application/declaration that says 'I'm a resident or non-resident alien and I am earning money in the US and need to pay taxes on that money'.

In this context 'alien' means non-citizen, not Grays or Invisible Lizard-men or various and sundry Time-travelers from endless existential quantum universe futures, or any of the other semi-human and non-human species currently in vogue in crazy-land. :)

Re: EIN - what info needs to match up?
 

Yeah, some accounts seem to take off while others, for no apparent reason, seem to stumble around lost...

In short, I want to avoid presenting the IRS with data that may cause 'questions' that seem to require 'answers', if that makes sense.

I believe mismatched data across multiple 1099's inspire curiosity, and curiosity is a bad thing when you deal with the government...

That's why. I prefer to just declare the income and avoid having to explain discrepancies away.

Re: EIN - what info needs to match up?
 

^ I see. So it's moreso tax related than eBay/PP related? Interesting

Re: EIN - what info needs to match up?
 

EB doesn't care at all either way, PP's interest is driven solely by the requirements of the IRS.

If they didn't HAVE to do it I doubt they'd even be involved, and not that long ago they didn't do anything at all with regards to this.

Re: EIN - what info needs to match up?
 

Hey guys one question what is the best type of EIN I can get for stealth Business PayPal accounts? LLC, Individual EIN or Partnership? Hopefully I can just get an Individual EIN or Partnership since they are free fromIRS website. Thank you in advance.

Re: EIN - what info needs to match up?
 

What sort of Income do you have? What kind and value of assets do you have? What other types and sources on income do you have? What other liabilities do you have? Are you currently paying self employment taxes? Do you want to avoid paying self employment taxes? Do you have IRA or Whole life insurance policies? Do you own real estate in your personal name? Do you file your taxes as an individual or jointly with a spouse? If you have a spouse does he/she have assets that need protected? Are you a US citizen? At some point are you going to want to get a bank loan or raise capital?

This question can only be answered knowing these answers and countless others. You need professional tax services. One entity is maxed taxed but maybe that is ok in your case. Another entity can have double tax or no tax at all and again, that is based on your needs only.

HELP - PayPal wants EIN re-verified 8 years after original one entered
 

My longstanding PayPal business account just became one where I can receive funds and transfer to my bank but can't pay for eBay or other items (just eBay fees) from the PayPal balance because I didn't want to give them my SSN. It has been EIN-based instead.

In all the years the account has never gone over $20K and probably will not this year. So I do not think it has ever generated a 1099.

Anyway, I just got the notice saying I had to re-verify my EIN. Apparently there was something that did not match or a typo or something. If all they match is the number and the business name (i.e. addresses are irrelevant), then I take it there was a mismatch in the business name.

I originally got the EIN number way back in 2011 and entered that and the business name (let's say Acme Widgets) and all has gone fine since.

I had forgotten how I went about the EIN originally (though taking advice from here at the time), but I pulled the IRS letter, dated from 12/2011, and the address block on the letter goes like:

JOHN Q. DOE
123 Maple Street
Anytown, GA 30201

Where JOHN Q. DOE is my real name. Is that the name PayPal wants instead of Acme Widgets? PayPal's change form does not allow me to change the name of Acme Widgets.

And because the PayPal account is a stealth, the original registered name on it is not JOHN Q. DOE, but another name. So I wonder if that raises a flag even though the PayPal account has been upgraded to a business account in the interim. The address PayPal has also does not match the address on the IRS form, but if PayPal sent me mail to the address it has, I would get it.

WHAT SHOULD I DO? Get another EIN with the Acme Widgets name on it? Try to get the John Q. Doe as the business name? Or is there no way to fix this? It's probably a mistake to do all this as a sole proprietorship but right now it's only $5-7K or so in annual revenue.