Re: How do returns/refund work with 20K annually?
I know it's all irrelevant to this post and I really wasn't trying to insult you or start an argument. I read that exact IRS page before making my post this morning and reached the conclusion that since Paypal is a third party payment processor, all payments processed with them over 20k are reported regardless of how the customer pays.
The whole reason we have this $20,000/200 law is because brick-and-mortar stores started fussing about how e-commerce merchants weren't being required to pay taxes on their online profits.
I'm sorry to piss you off man, I really am. I wanted to get to the bottom of this so I would know in the future. Quote:
Third party network transaction means any transaction that is settled through a third party payment network, but only after the total amount of such transactions exceeds $20,000 and the aggregate number of such transactions exceeds 200.
| Paypal is classified as a third party network.
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Last edited by phaz0rz; 12-29-2017 at 09:18 AM.
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