Have EIN and SSN on my real account but who pays taxes? - eBay Suspended & PayPal Limited Forums
eBay Suspension & PayPal Limited Forums  
Join Today
Register Subscribe
     

Registration is fast, simple and absolutely free so please, join our community today!


Go Back   Home > Marketplace Discussions > PayPal Talk

PayPal Talk PayPal Forums. General issues related to PayPal.

Reply
 
Thread Tools
  #1  
Old 10-17-2017
Junior Member
 
Join Date: Aug 2015
Posts: 117
Thanks: 4
Thanked 4 Times in 4 Posts
Activity: 0%
Longevity: 33%
iTrader: (0)
Default Have EIN and SSN on my real account but who pays taxes?

I have a question thats confusing the hell out of me

I have an account under my moms name with an EIN attached. Paypal was asking for the SSN so my mom gave it and thats attached to it as well. My question is for the paypal business account who is liable to pay the taxes
The business EIN I made for it or the SSN(which is under my moms name)
My mom is not operating this account and it would screw her over if she were to pay the taxes.
If it is her that has to pay the taxes what should I do

Please let me know what you guys know as this has been stressing me out for weeks
Reply With Quote
The complete step-by-step guide to get back to selling today!

  #2  
Old 10-17-2017
Senior Member
 
Join Date: Sep 2011
Posts: 3,126
Thanks: 11
Thanked 750 Times in 578 Posts
Activity: 0%
Longevity: 63%
iTrader: (0)
Default Re: Have EIN and SSN on my real account but who pays taxes?

If they issue the 1099K in the SSN your mom is responsible. If they issue the 1099 to the EIN and the EIN is in your name it's you.

I'd call and be sure it's going to be issued to the EIN and pray they do it.

This is just another reason not to use other people's info, you've exposed your mom to a possible tax issue, and one way or another this may end up hurting her even if you pay the taxes for her.

I know this is unforeseen and wasn't your intention, but now it's done and can't be undone.
Reply With Quote
  #3  
Old 10-17-2017
phaz0rz's Avatar
Senior Member
 
Join Date: Nov 2015
Posts: 8,760
Thanks: 1,767
Thanked 3,141 Times in 2,364 Posts
Activity: 81%
Longevity: 31%
iTrader: (2)
Default Re: Have EIN and SSN on my real account but who pays taxes?

Agreed with Dallis. You really shouldn't have used your mom's info.

What kind of EIN are you using?

If it's a sole proprietor EIN or a single-member LLC EIN, then your mom will be required to pay taxes on your profits regardless of whether or not the 1099k is sent out with the EIN or SSN printed on it. Profits from those two types of entities are passed along to the owner's personal tax return. Since the EIN is in your mom's name, she is the owner and will have to report the profits on her personal taxes for either of those two entity types.

EDIT: after re-reading, I'm not sure if the EIN was made in you or your mom's name. Regardless though entity type makes a difference because it determines how you file taxes.
__________________
____________
_______
___
Reply With Quote
  #4  
Old 10-17-2017
Senior Member
 
Join Date: Sep 2017
Posts: 2,260
Thanks: 796
Thanked 553 Times in 417 Posts
Activity: 31%
Longevity: 17%
iTrader: (0)
Default Re: Have EIN and SSN on my real account but who pays taxes?

I think it's in his name. So the income would be reported on him, right?
Reply With Quote
  #5  
Old 10-17-2017
phaz0rz's Avatar
Senior Member
 
Join Date: Nov 2015
Posts: 8,760
Thanks: 1,767
Thanked 3,141 Times in 2,364 Posts
Activity: 81%
Longevity: 31%
iTrader: (2)
Default Re: Have EIN and SSN on my real account but who pays taxes?

If it's OP's EIN, and it's a single-member LLC/sole prop EIN, then yes the business income would be passed to OP's personal tax return. The mom's SSN should be irrelevant since the account has been upgraded to business. Most of my first post was made with the assumption OP's mom obtained the EIN. I don't think PP has any way to check the SSN an EIN is registered under so that shouldn't be a problem.

OP- I don't know what kind of business you setup. Just know if it's not one of the two I mentioned, you'll have to file a separate return for the business.
__________________
____________
_______
___
Reply With Quote
The Following User Says Thank You to phaz0rz For This Useful Post:
ebaystealth1974 (10-17-2017)
  #6  
Old 10-17-2017
Junior Member
Threadstarter  
 
Join Date: Aug 2015
Posts: 117
Thanks: 4
Thanked 4 Times in 4 Posts
Activity: 0%
Longevity: 33%
iTrader: (0)
Default Re: Have EIN and SSN on my real account but who pays taxes?

Quote:
Originally Posted by phaz0rz View Post
If it's OP's EIN, and it's a single-member LLC/sole prop EIN, then yes the business income would be passed to OP's personal tax return. The mom's SSN should be irrelevant since the account has been upgraded to business. Most of my first post was made with the assumption OP's mom obtained the EIN. I don't think PP has any way to check the SSN an EIN is registered under so that shouldn't be a problem.

OP- I don't know what kind of business you setup. Just know if it's not one of the two I mentioned, you'll have to file a separate return for the business.
Yes I have a paypal business account with the EIN under my name
Please confirm the SSN will be irrelevant since it is a business account on paypal
Thank you!!!
Reply With Quote
  #7  
Old 10-18-2017
phaz0rz's Avatar
Senior Member
 
Join Date: Nov 2015
Posts: 8,760
Thanks: 1,767
Thanked 3,141 Times in 2,364 Posts
Activity: 81%
Longevity: 31%
iTrader: (2)
Default Re: Have EIN and SSN on my real account but who pays taxes?

Quote:
Originally Posted by verbalseduction View Post
Yes I have a paypal business account with the EIN under my name
Please confirm the SSN will be irrelevant since it is a business account on paypal
Thank you!!!
It will be - don't worry. There's only room for one tax ID on the 1099.
__________________
____________
_______
___
Reply With Quote
Reply



Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
How does amazon taxes work on products? Some have taxes some dont golferman Amazon 3 03-02-2016 08:27 PM
How do I handle taxes and going forth as a real business (paypall / ebay)? jayapocalypse PayPal Talk 1 01-05-2015 08:46 PM
What to do with buyer who pays for 1 item but not another? BubbleTea Subscriber Discussions 13 06-13-2012 09:46 AM
It pays to pay attention to your buyers ovidiu Amazon X 13 08-28-2011 01:20 PM
Who here pays taxes on 'Stealth' earnings? MadSam Everything Else 0 05-02-2010 05:25 PM


Aspkin Group

All times are GMT -5. The time now is 04:31 PM.


Stop the guessing games and learn how you can quickly and easily get back on eBay today!
Read the best selling step-by-step eBay Suspension guide eBay Stealth!
Amazon Suspension? Read Amazon Ghost to get back on Amazon!
vBulletin® Copyright ©2000 - 2019, Jelsoft Enterprises Ltd.
Ad Management by RedTyger
no new posts