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Paypal sent me this email. Ignore or respond?
 

Important - Confirm your Taxpayer Status


In order to comply with your State Form 1099-K income reporting requirements, we need you to provide your Taxpayer Identification Number (TIN).

1. Log into your PayPal account
2. Click on your account settings (gear icon in the upper right corner)
3. Within Account Options, enter your TIN.

Why is this required?

Under the IRC Section 6050W of the United States Internal Revenue Service (IRS), PayPal is required to report the total payment volume received by U.S. account holders whose payments exceed both of these federal levels in a calendar year:

1. U.S. $20,000 in gross payment volume from sales of goods or services in a single year.
2. 200 separate payments for goods or services in the same year.

The information return used by PayPal to satisfy this requirement is a tax Form 1099-K.

State Reporting Requirements

Massachusetts has implemented Form 1099-K reporting requirements that are different from federal tax reporting requirements. These different reporting requirements mandate that PayPal report on account holders who receive payments for goods and services of $600 or more.

To comply with Massachusetts state tax reporting requirements, we'll issue you a Form 1099-K if you meet this requirement. This form summarizes the gross payments you received through PayPal for the sales of goods, or services during the most recent calendar year.

We send this information to Massachusetts tax authorities to comply with respective state tax reporting regulations.

Note:

• PayPal will not report this information to the IRS since the payment volume is below the IRS federal reporting requirements.
• PayPal is not qualified to give you specific tax guidance and asks that you contact a tax professional.
• If you need more information about these specific state requirements, please visit that state tax authority's guidance at the following link:
https://www.mass.gov/service-details...-organizations

Sincerely,

PayPal

Re: Paypal sent me this email. Ignore or respond?
 

What should I do? I haven't reached the $20,000 yet on this account.

Re: Paypal sent me this email. Ignore or respond?
 

Give them your EIN.

If that's all they are asking, it should be ok.

If not, come back here and tell us

Re: Paypal sent me this email. Ignore or respond?
 

Is your account based in MA or VT. My account is in VT and received the same mesage this morning. What if we don't have EIN and ignored the email. Will the account be limited and can we still get the money after 180 days. Because these are stealth account

Re: Paypal sent me this email. Ignore or respond?
 

You can still get the funds if it gets limited, after 180 days. Just make sure you have a bank account on there that you can withdraw to. Make sure you keep the phone number on that account active.

Re: Paypal sent me this email. Ignore or respond?
 

My account is based on MA but I live in TN

Well I logged into the account so far nothing seems to be changed. No notification within paypal website itself. It was just an email. Ther BA was a digital account so no access to it. If I do get limited and assuming after 180 days I withdraw the money would I be able to send this money to another account? The address and BA is not accessible anymore.


Just to add I got this email on two of the accounts I have on paypal and they are both MA based. But both have not reached even close to $20,000 yet

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Re: Paypal sent me this email. Ignore or respond?
 

I also got this email earlier this week on one of my "Boston, MA" PP's that's more or less dormant and has seen little past activity. I'm just going to ignore the request since I don't forsee taking in any payments on this acct for the rest of the year anyway.

Re: Paypal sent me this email. Ignore or respond?
 

I have funds in this account and will be taking in some more revenue. Would you suggest transferring this fund to another account? or stop selling from now an on? or should I just simply ignore it.

Re: Paypal sent me this email. Ignore or respond?
 

Reading this new e-mail, it seems the 1099-K reporting requirements for Massachusetts are really low starting at $600. I would imagine it's still 200 transactions tho + $600, right?

Well, one thing for sure, I will not be making any MA stealth acccounts. I only have this one but probably won't be using it now. Seems these northeastern states are getting more and more greedy with their taxation rules. Screw 'em. ;)

Re: Paypal sent me this email. Ignore or respond?
 

A real Paypal email never opens an attachment unless you are 100% sure it’s legitimate.

Re: Paypal sent me this email. Ignore or respond?
 

It doesn't have any attachments, I wonder what made you assume this?
Are you talking about the link? It's a link providing the proof of the statement they were emailing me about.

Re: Paypal sent me this email. Ignore or respond?
 

Don't do it.