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Old 03-04-2018
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Default Possibly needing to get an EIN

Acct is selling well and (likely based on projected sales) just got the email from PP requesting SSN or EIN.

I have a question about what I see from the actual PPl site which is:


Quote:
PayPal is required to report gross payments received for sellers who receive over $20,000 in gross payment volume AND over 200 separate payments in a calendar year. A seller has to exceed both IRS thresholds ($20,000 in gross payment volume and 200 separate payments) in a calendar year before a Form 1099-K is required.
My question is (and I have read through several posts but haven't gotten clarity) when it comes to items/dollar amount sold, will PP send the 1099 at 200 items OR $20K? Or does it have to be both at 200 items AND $20K like noted on the PP site?

Seems to spell it out clear on PP site, but want to double check w users who know or have experienced first hand before I make a mistake. I know how they are d*cks and like to trip ppl up w wordplay.

For example - let's say my items cost $50/ea. Does that mean I'd never make it to $20K anyway without getting a 1099? ($50/item x 200 = $10K)
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Old 03-04-2018
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Default Re: Possibly needing to get an EIN

Last I remember it was either OR, not both but I could be wrong.
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Default Re: Possibly needing to get an EIN

Thanks for the reply so quick aspkin . I thought the same - then just went to the PP site out of curiosity and saw the above info. So yep, figured I'd post about it
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Old 03-04-2018
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Default Re: Possibly needing to get an EIN

In my experience I've never got a 1099 if I wasn't over $20,000 - even if I surpassed the 200 item mark.
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Default Re: Possibly needing to get an EIN

Thanks Gladiator. Regarding that - I thought it was best to keep sales under $20K since everything on the 1099 has to matchup (payee named on 1099 and your actual name)?

And still pay taxes on all sales
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Default Re: Possibly needing to get an EIN

If your info isn't bulletproof, don't cross the 20K threshold or you're toast.

If you're doing well enough to get the notice in early March, you may want to fix this particular account up properly so it can withstand the notice.
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Old 03-04-2018
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Default Re: Possibly needing to get an EIN

The IRS law clearly states 20K and 200 items must be crossed. Some states are requiring all transactions to be reported. For example MA. but paypal still follows the IRS rule as of recent.

Now paypal may freeze up your account well before that point.
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Old 03-07-2018
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Default Re: Possibly needing to get an EIN

I don't think the IRS cares about the number of transactions, just the gross number reported, although they may use it to cross check you if the audit you.

The individual states probably have more interest in the transaction count.
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Old 03-07-2018
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Default Re: Possibly needing to get an EIN

They do care, but they only care if it's over 200 transactions and it's over $20k.

200 sales OR $20,000 in sales - you're required to have a tax ID on file or you're limited
200 sales AND $20,000 in sales - Paypal creates a 1099k for you

They require your tax ID in the first part because of their legal obligations in the 2nd part. It's all clearly laid out in the TOS.
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Old 10-30-2018
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Default Re: Possibly needing to get an EIN

Can't we get a steath EIN for stealth account . BTW my Philippine account got this msg too :(
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Old 10-30-2018
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Default Re: Possibly needing to get an EIN

Quote:
Originally Posted by sarathf View Post
Can't we get a steath EIN for stealth account . BTW my Philippine account got this msg too :(
No such thing as a "stealth EIN". EIN's are assigned to real American citizens.

You could get a real EIN but you would probably need to use a filing service to get one for you.
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