Forum

What's PayPal Current Stance Reporting Taxes
 

Has any thing changed, Last I remember paypal only send financial info to the IRS if you receive 200 transactions "AND" $20,000 revenue within a calender year.

However now on all my new accounts paypal are pushing for me to give them tax information (SSN or Tax ID) to comply with new IRS requirements and they are saying the IRS will require anyone receiving $600 in sales. Any better clarification on this?

Here's an article on it
https://www.nbcnews.com/news/venmo-p...-irs-rcna11260

Re: What's PayPal Current Stance Reporting Taxes
 

Yes everything changed after Jan 1, 2022. Uncle Sam wasn’t happy about businesses not reporting their sales to the IRS. So now they want to track every little thing we do now

Re: What's PayPal Current Stance Reporting Taxes
 

anyone who has sold $600 would have deductibles like mileage driven,fees,shipping supplies,postage ,software/hardware deductions.

Re: What's PayPal Current Stance Reporting Taxes
 

The changes are applicable to this year, not 2021.

I had to close my cash app account because of it. :(

Re: What's PayPal Current Stance Reporting Taxes
 

Hmm... I'm interested in the deductibles. I'm wondering how much of that stuff they'll let us be flexible with. The crazy part is still to this date paypal is saying 200 and $20,000 on there website. So is that out dated or are we missing something here?

Re: What's PayPal Current Stance Reporting Taxes
 

Yes, the $600 requirement got in effect this year, unfortunately.

Re: What's PayPal Current Stance Reporting Taxes
 

With these new requirements, in you guy's honest opinion what do you think that means for stealth? and where do we go from here?

Re: What's PayPal Current Stance Reporting Taxes
 

https://memegenerator.net/img/instan...your-taxes.jpg


Out of the USA, I guess. Not sure if it's quite worth it yet. =}

Re: What's PayPal Current Stance Reporting Taxes
 

Stealth is over. Done. Finished.
Ebay's plan to close every loophole over the past year has been successful. Ebay will know who and where you are if you are going to sell on their platform, simple as that.
The IRS will know how much you sell and require you to pay your taxes on everything.
Anybody that disagrees with this and tells you that stealth is alive and well is living in the past, doesn't have an Ebay account working anymore and can't face the truth.

Re: What's PayPal Current Stance Reporting Taxes
 

Yup. :(

Even the old workaround of using accounts from other countries is totally dead in the water with MP. eBay has joined Amazon in the 21st century.


EDIT: I drifted off into talking about eBay but the same goes for Paypal from what I can tell. Paypal started asking for tax ID's on my US "stealth" accounts last year around August with a message saying "add your tax info now to comply with next year's new IRS regulations." One thing that may still be an option would be linking a US bank account to a Canada Paypal. It's never been possible on the website but has been possible over the phone. The guy who used to sell CA eBay accounts here would have US bank accounts attached to all the Paypal accounts he sold.

I'm not sure if that even matters though since I think your bank would still have to report the money if you exceed $600 in a year.

Which leaves working with foreign Paypal + foreign bank account, with all funds staying out of the American financial system and I guess going straight to suppliers. :noidea:

Re: What's PayPal Current Stance Reporting Taxes
 

As a US citizen how difficult is it to get both a foreign PP and a foreign bank account. And is the seller of Canadian PP still around?

Re: What's PayPal Current Stance Reporting Taxes
 

Bank monitoring is gone for now with the infrastructure bill. Just third party reporting has changed for now.

Re: What's PayPal Current Stance Reporting Taxes
 

What does this mean? And is it a good or bad thing?

Re: What's PayPal Current Stance Reporting Taxes
 

Are you still using your account?

Re: What's PayPal Current Stance Reporting Taxes
 

It's always been about taxes.

Re: What's PayPal Current Stance Reporting Taxes
 

It is best that the IRS does not monitor every transaction in every single bank account IMO. Glad it failed and did not pass.

Re: What's PayPal Current Stance Reporting Taxes
 

Virtually all other countries have problems of their own.

I am considering moving much of my business to Georgia and Bulgaria(off shore business if you will) but I have to go there to open checking accounts so it is on a back burner for now.

Re: What's PayPal Current Stance Reporting Taxes
 

For me and my network, it is Holding Company that owns LLCs. So one company will hold all the pass through series LLCs and we are exploring doing business abroad as well.

Re: What's PayPal Current Stance Reporting Taxes
 

If you can pop into Canada, it's not hard to get bank accounts going.

Have you checked marketplace for sellers of Canadian PP?

Re: What's PayPal Current Stance Reporting Taxes
 

So I guess the question that should be asked is,

What is the deadline? and what happens if you never give your tax id.

Before you reply with your "Thoughts" can you provide proof to support it.

Re: What's PayPal Current Stance Reporting Taxes
 

No, he left. Right in time to avoid MP fallout.