Taxes - PayPal, other credit card processors reporting income (gross receipts) to IRS - eBay Suspended & PayPal Limited Forums
eBay Suspension & PayPal Limited Forums  
Join Today
Register Subscribe
     

Registration is fast, simple and absolutely free so please, join our community today!


Go Back   Home > Marketplace Discussions > PayPal Talk

PayPal Talk PayPal Forums. General issues related to PayPal.

Closed Thread
 
Thread Tools
  #1  
Old 02-03-2008
Junior Member
 
Join Date: Nov 2007
Posts: 25
Thanks: 1
Thanked 0 Times in 0 Posts
Activity: 0%
Longevity: 93%
iTrader: (0)
Thumbs up Taxes - PayPal, other credit card processors reporting income (gross receipts) to IRS

I read the news saying IRS won the lawsuit in CA and will start ask Paypal to give them the seller information...

Does anyone know about this thing and any solution to avoid leaking info to IRS?
The complete step-by-step guide to get back to selling today!

  #2  
Old 02-03-2008
Junior Member
 
Join Date: Jan 2008
Posts: 60
Thanks: 0
Thanked 1 Time in 1 Post
Activity: 0%
Longevity: 92%
iTrader: (0)
Default

Vote Ron Paul for president and he'll do away with the IRS. problem solved.
  #3  
Old 02-03-2008
ebayhateluv's Avatar
Junior Member
 
Join Date: Oct 2007
Posts: 2,329
Thanks: 0
Thanked 105 Times in 41 Posts
Activity: 0%
Longevity: 94%
iTrader: (7)
Default

HI- NO matter if they get the info or not, We have PLENTY of write offs to off set the income anyhow... (How many hours spent on this forum for research related to your business )?
--Or whoever you had do the research for you... )
__________________
Always.. Be the BEST you can Be, at Whatever you do! Be Part of the Solution, rather than Part of the Problem.
  #4  
Old 02-03-2008
Junior Member
 
Join Date: Oct 2007
Posts: 56
Thanks: 0
Thanked 0 Times in 0 Posts
Activity: 0%
Longevity: 94%
iTrader: (0)
Default

Won't they need out SS #'s for that?

I have never given them mine.
  #5  
Old 02-04-2008
Junior Member
 
Join Date: Dec 2007
Posts: 417
Thanks: 8
Thanked 26 Times in 22 Posts
Activity: 4%
Longevity: 93%
iTrader: (0)
Default

Quote:
Originally Posted by savahaganda View Post
If this is the case... I doubt that the IRS needed to take Paypal to court inorder to begin to screw over its users... It would be more like Paypal taking the IRS to court. Paypal would never stick up for its users or what not.... Paypal is more like the kinda company that would do what ever it can to screw over its users... I would compare Paypal to a rabid dog, biting the hand of his owner.

In other words... if the Paypal needed to be taken to court over the protection of its user... that would be the first time and only time that would happen
Nah Paypal doesnt want to do this because it means less money for them. If the IRS starts requiring they turn over info that means they have to start having real security on the website (money), people who can actually help customers (more money), and a resolution department that doesnt just send emails (more money). They would actually have to start taking responsibility for transactions and not just throwing up their hands and saying look we only took a payment.

Its the same thing with ebay and why they dont want the irs to know what peole are selling because they just wanna throw up their hands and go look guys we cant help you we are only an auction site.
  #6  
Old 03-08-2008
x2ruff4u's Avatar
Executive [VIP]
 
Join Date: Jan 2007
Posts: 508
Thanks: 61
Thanked 40 Times in 23 Posts
Activity: 4%
Longevity: 99%
iTrader: (1)
Thumbs up Taxes - PayPal, other credit card processors reporting income (gross receipts) to IRS

Hey guys been a while, I been using this card works great, but it requires my social when registering for it t.t. Anyways do they report to the irs how much I make? On the registration part like others it is used to see if you are a real person with the social\Im pretty much a full time student. Just wondering before I file it and something goes bad on me =o. Thanks in advance. (i know its kinda late to file also) t.t !!

Last edited by Modee; 08-04-2008 at 03:05 AM.
  #7  
Old 03-08-2008
aspkin's Avatar
Administrator
 
Join Date: Jan 2007
Posts: 10,610
Thanks: 2,879
Thanked 3,651 Times in 1,563 Posts
Activity: 52%
Longevity: 100%
iTrader: (24)
Default

They only report when they send you a 1099 form.

If they don't send you anything, they're not reporting.

I learned that from Modee.
__________________

Notice: Do not PM me. I get too many PMs to answer.
Please go to https://support.aspkin.com and submit a ticket instead.
  #8  
Old 03-09-2008
x2ruff4u's Avatar
Executive [VIP]
 
Join Date: Jan 2007
Posts: 508
Thanks: 61
Thanked 40 Times in 23 Posts
Activity: 4%
Longevity: 99%
iTrader: (1)
Default

Well I got a 1099-DIV for like 17 dollars. So basicly report all my income I made from paypal to the irs n pay the taxes correct? This is from the paypal money market fund. Thanks in advance again!

That would be from january to december right?
  #9  
Old 03-09-2008
ebayhateluv's Avatar
Junior Member
 
Join Date: Oct 2007
Posts: 2,329
Thanks: 0
Thanked 105 Times in 41 Posts
Activity: 0%
Longevity: 94%
iTrader: (7)
Default

HI:
I recd the same form for 4 of my pp accts for last year, i just give those to my acct, along with the other 1099's from the banks, he knows what to do with them..

BTW- any stock losses will offset the gains earned in interest..
__________________
Always.. Be the BEST you can Be, at Whatever you do! Be Part of the Solution, rather than Part of the Problem.
  #10  
Old 03-09-2008
Junior Member
 
Join Date: Mar 2008
Posts: 73
Thanks: 0
Thanked 2 Times in 2 Posts
Activity: 0%
Longevity: 91%
iTrader: (0)
Send a message via AIM to Throb-n-Rod
Default

needing a social security number for a credit/debit card and having to use real information with the post office is due to the patriot act in an attempt to keep terrorists from using credit/debit cards to transfer money
  #11  
Old 03-10-2008
aspkin's Avatar
Administrator
 
Join Date: Jan 2007
Posts: 10,610
Thanks: 2,879
Thanked 3,651 Times in 1,563 Posts
Activity: 52%
Longevity: 100%
iTrader: (24)
Default

Okay Modee, question for you. Since Paypal isn't reporting money going through your accounts. When you withdraw that money, and it goes to your bank account, do you report that money then? Thats what I've been doing for the past few years. I just report that money as income.

Could I get away with not reporting that money? I have a feeling I'm going to be audited this year because I have tons of 1099 forums from different affiliate companies, and what I've heard is the IRS tends to audit people with multiple streams of income. Should I risk Paypal?

Or we don't have to report all money going into our checking accounts?
__________________

Notice: Do not PM me. I get too many PMs to answer.
Please go to https://support.aspkin.com and submit a ticket instead.
  #12  
Old 03-10-2008
Junior Member
 
Join Date: Jan 2008
Posts: 445
Thanks: 0
Thanked 0 Times in 0 Posts
Activity: 0%
Longevity: 92%
iTrader: (0)
Default

i would think that if you are audited the irs will have easy access to your bank statements, and see that you did or did not report all income coming through the account.

also i thought there were new laws just recently passed that would allow the government to have access to all paypal income. they are trying to catch people from the US who deposit money from their paypal into overseas banking accounts. if the government asked, then paypal would have to fork over your information.
  #13  
Old 03-10-2008
ivegotinfo's Avatar
Junior Member
 
Join Date: Nov 2007
Posts: 607
Thanks: 0
Thanked 3 Times in 3 Posts
Activity: 0%
Longevity: 93%
iTrader: (1)
Default

Quote:
Originally Posted by Throb-n-Rod View Post
needing a social security number for a credit/debit card and having to use real information with the post office is due to the patriot act in an attempt to keep terrorists from using credit/debit cards to transfer money
man thats such bs. its just to keep regular people in check. if a terrorist really needs money, he's not going to go use a western union transfer.
  #14  
Old 03-10-2008
Junior Member
 
Join Date: Jan 2008
Posts: 445
Thanks: 0
Thanked 0 Times in 0 Posts
Activity: 0%
Longevity: 92%
iTrader: (0)
Default

i knew that the new laws were for overseas transactions, but i thought it would also aply to all accounts. i wasn't sure, guess i was wrong.

and that's what i meant about the bank account statements. if they ask for them you better come up with them.

and i really don't think someone is going argue to the IRS that the thousands of dollars coming in from paypal is all going to their business costs and you're just breaking even. especially if this is your sole income, and you do not have a job. it's pretty hard to explain how that person would be able to afford their, house, cars, credit card, payments, etc... granted some of the house, and cars can be written off as work related expenses, but not all. i have read before that if your stated income does not reflect close to the amount of what kind of house you can afford then a red flag will be raised to the IRS.

and yes, i aggree that you can get away with most anything you want, but if the audit ever comes then the person should have tons of info to back up the moves they've made.
  #15  
Old 03-10-2008
Junior Member
 
Join Date: Jan 2008
Posts: 445
Thanks: 0
Thanked 0 Times in 0 Posts
Activity: 0%
Longevity: 92%
iTrader: (0)
Default

no im just speaking if claiming things like your overhead cost. i'm not incorporated. i file self-employed, so that by it's self puts me at higher risk for being audited. then if my numbers do not look correct, or seem too low for what i own then they gives me an even greater chance of being audited.

and me personally i prefer to claim as much as i can because without a proveable income you can't get too far. couldn't buy houses, cars, etc...
  #16  
Old 03-10-2008
aspkin's Avatar
Administrator
 
Join Date: Jan 2007
Posts: 10,610
Thanks: 2,879
Thanked 3,651 Times in 1,563 Posts
Activity: 52%
Longevity: 100%
iTrader: (24)
Default

Thanks, thats what I thought.

The money I withdraw is all my profit. Any cost are withdrawn to supplier banking accounts. And I just claim what I withdraw. Weird setup. :o



Quote:
Originally Posted by Modee View Post
twdell, no, you're wrong. That new rule about PayPal applies only to PayPal accounts where the funds are transferred directly overseas, such as to offshore (foreign) accounts. We already went into this in a thread on this forum:
http://www.aspkin.com/forums/paypal-...aypal-now.html

twdell, you're also wrong about the IRS having direct access to your bank accounts. You may think it works that way, but not quite.

Aspkin, basically, you can get away with whatever, but if you are audited, you will be asked to provide banking statements and so on, and if they do not jibe with your tax returns, then you would be in trouble and at a minimum owe back taxes and penalties. At that point, if you refused to provide the bank accounts and the IRS could show probable cause, they could subpoena your bank accounts, but it's really not as easy as it seems and they would do that only in a full blown probe.

The way the IRS works more typically is they just propose that you owe a certain amount of tax, and challenge you to dispute it. If you do not dispute, then they enter a federal tax lien if necessary for that amount. Of course, they estimate that tax and penalty so that it will be higher than the reality. If they really think that you got away with murder, and they can't even make a guaranteed (for them) highball estimate, they might take the drastic action I describe above - with the subpoenas and so on. And the deeper you get into it with them, and the more conflict between what you reported and what they unearth - the more chance the probe will end up criminal, which is why you don't want to give them any ⊗⊗⊗⊗ documents of course.

Aspkin, also, the amount of money that transfers from PP to your bank account is not income is it? I mean, you must have cost of goods and expenses to deduct against that.
__________________

Notice: Do not PM me. I get too many PMs to answer.
Please go to https://support.aspkin.com and submit a ticket instead.
  #17  
Old 03-10-2008
Junior Member
 
Join Date: Jan 2008
Posts: 445
Thanks: 0
Thanked 0 Times in 0 Posts
Activity: 0%
Longevity: 92%
iTrader: (0)
Default

when submitting your tax forms you can deduct the interest paid on your house, and the taxes. by that amount you claim i would assume that, like you said, with the computer fomula they can tell that, hey this guy cannot afford a $300,000 house. he claimed his net income was $15,000.

i have always assumed that their system is like ebay and paypal. there really isn't too many people analizing everything you do, but they are alerted by a computer that says you should be looked into more closely.

yeah, thats' what i try to do, is be truthful on the returns. i'm too paranoid not to.
  #18  
Old 03-17-2008
Junior Member
 
Join Date: Mar 2008
Posts: 73
Thanks: 0
Thanked 2 Times in 2 Posts
Activity: 0%
Longevity: 91%
iTrader: (0)
Send a message via AIM to Throb-n-Rod
Default

I know the banks report single deposits over 10 or 12k somthing like that to the IRS I made that mistake once.
  #19  
Old 03-17-2008
GreenBean's Avatar
Executive [VIP]
 
Join Date: Sep 2007
Posts: 42,043
Thanks: 5,509
Thanked 9,019 Times in 7,035 Posts
Activity: 37%
Longevity: 95%
iTrader: (6)
Default

xxxxrod, the magical figure in the USA is US $10,000 and in Australia it is AU $10,000.

Not sure if any of the poms would ever have any spare money so I
can not say what their amount might be. LOL.
__________________
Ever look at someone and think WhyTF has no one hit you with a shovel yet?
  #20  
Old 03-18-2008
ivegotinfo's Avatar
Junior Member
 
Join Date: Nov 2007
Posts: 607
Thanks: 0
Thanked 3 Times in 3 Posts
Activity: 0%
Longevity: 93%
iTrader: (1)
Default

what do people whos paypal accounts got suspended do, where you can't even log in to see your transactions...and you are audited and must prove every single penny.
  #21  
Old 03-19-2008
Junior Member
 
Join Date: Jan 2008
Posts: 445
Thanks: 0
Thanked 0 Times in 0 Posts
Activity: 0%
Longevity: 92%
iTrader: (0)
Default

i think that's why you're supposed to have paper copies of everything. i'm guilty of it too. it's hard to keep up with printing out all statements though.
  #22  
Old 03-19-2008
Junior Member
 
Join Date: Jan 2008
Posts: 445
Thanks: 0
Thanked 0 Times in 0 Posts
Activity: 0%
Longevity: 92%
iTrader: (0)
Default

how far back does paypal let you print out statements?
Closed Thread



Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
how do you guys do taxes? keceli eBay Suspensions 14 01-06-2008 03:44 AM
Taxes and eBay rogueseller eBay Discussion! 11 12-26-2007 10:34 PM


Aspkin Group

All times are GMT -5. The time now is 10:55 AM.


Stop the guessing games and learn how you can quickly and easily get back on eBay today!
Read the best selling step-by-step eBay Suspension guide eBay Stealth!
Amazon Suspension? Read Amazon Ghost to get back on Amazon!
vBulletin® Copyright ©2000 - 2019, Jelsoft Enterprises Ltd.
Ad Management by RedTyger
no new posts