Should you isolate your PayPal accounts in separate banks?

[Geordi_resolve224]

FMU, There are not many limits on the number of bank accounts one can open at a financial institution. For example, my credit union allows you to open a second checking account online in just a few minutes. It seems to be that easy.

When it come to stealth, what I don’t understand is…

How safe is it to link two or more more PP accs to the same financial institution/bank?
Or it the best practice to isolate every account in separate institutions/banks?

[agent006140]

not if the 2 bank accounts are held under different names ,SSN ,address,date of birth

[Geordi_resolve224]

What about two unique PP accounts going to two different checking accounts at the same bank?

[Steveo036940]

Not sure what agent is talking about, the bank holders ssn, name and date of birth are as irrelevant as many of agents posts on this forum.
You can absolutely use the same bank for multiple stealth accounts as each account has a unique account number.

[SaiJin]

Originally Posted by Geordi_resolve224

What about two unique PP accounts going to two different checking accounts at the same bank?

Hey, start reading the stealth guide.

Your question is just one piece of the puzzle.
Everything needs to be done correctly in the correct order

[agent006140]

Originally Posted by Steveo036940

Not sure what agent is talking about, the bank holders ssn, name and date of birth are as irrelevant as many of agents posts on this forum.
You can absolutely use the same bank for multiple stealth accounts as each account has a unique account number.

you can go to a bank and open many bank accounts to your heart content ,but if they share the same SSN ,it is just one big account in the eyes of the tax authorities and others as well.
It is very RELEVANT ,DONT EVER FORGET THAT !!!!!!

[Icykid298]

-deleted---

[agent006140]

I hope this piece of information is more relevant-
In a tax audit by IRS or a state sales tax audit by your state auditor,they want to see your bank statements for multiple years,they are interested in the deposits made to the bank accounts.for IRS,any thing which is not inheritance,insurance settlement,gambling win,pension/SS payments,then it must be Income.
For state sales tax audit,they dont care about how much you make,they care about sales tax,did you collect and remit sales tax?
-it is up to us to prove most of our sales are to out of state buyers,else they would assume they are all sold to in state buyers.
-if they find a sizable amount in your bank statement which cannot be traced to your sales ledger,then it is a cash sales,(aka you and your buyer are trying to avoid paying sales tax by accepting cash payment)so now you pay the sales tax for your customer.
So it is a good idea to open a bank account just for your ecommerce business,make life easy for yourself in an audit and for the auditor as well!

[agent006140]

your paypal history will show every order paid via Paypal,the item,the description,the amount,the sales tax collected ,name of the buyer,his address including city,state and country ,but for digital sales,the address of the buyer is not recorded,Paypal has his address,it is just not past on to you,which has created a problem for a lady in NM who was audited by the state,she sells digital goods only and Paypal would not bother to give her the address (state ) of the buyers.
I know 2019 ,Ebay is collecting and remitting the sales tax for us,but if you have your own website or sell in a venue which does not collect sales tax,like Bonanza/Rubylane,then you will need to remit the sales tax yourself.
States are broke,in some states,they cant raise property tax due to hurricanes and flooding,so they are looking for revenue elsewhere .
,

[agent006140]

There are advantages of Not opening all your bank accounts in one bank,kind of like not putting all your eggs in one basket.
if the tax authority knows you have a bank account in Bank A,it could easily find out if you have other accounts with that bank as well,but it would not be feasible to find out if you have accounts with other banks,there are just too many banks to look into.
It can be done,like if your uncle past away and the heirs wonder where all his assets are,they could retain a service to go thru many banks ,but not tax authorities unless they really have to.

[SaiJin]

Originally Posted by tinsoldier

Like Stevo said above, ignore what 'agent' said, it is completely irrelevant. My experience is that multiple accounts with the same institution is fine. It's also widely recommended on this forum as a multi-account solution, so seems to work well.

Yep, I agree with this. But at the same time, having 50 sub accounts at the same bank can be a little iffy.

Balance it.

[agent006140]

sure,if you like your tax audit,go ahead !
MAKE MY DAY !!!