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Paypal, Stealth Accts & Taxes
 

With the new tax legislation and all that I notice people scrambling in fear of the IRS. Now I'm not saying do not pay taxes, of course file your taxes... (dont come ****in with me uncle sam, i pay my taxes and my dad mom brother and sister do too, as well as all of the people in my cell phone and all my e-mail accounts)

But with so much inconsistency in Paypal (constant and abrupt limitations), I see no reason to waste time linking your stealth pp accounts more they they are already linked to you.

No matter how many billions they make, PayPal is hardly a real company. Just an online confiscator.

Even the biggest banks are still "little banks" to the BIGGEST bank

Honestly, the legislation is probably put in place by the central bank (or another bank god) for the payment processors (even paypal) who made extra billions last year confiscating seller's money.

Exactly how does a processing company or bank report confiscated or "held" money? As sales or revenues they made conducting business? What if they just happened to spend some or all of those billions? How do they report what they spent it on, and what about the seller's (or better yet: buyers) they took it from?

Knowing that 99% of sellers are going to assume they are SOL and abandon the entire situation, they might just pocket it.

Of all the several hundred thousand accounts they are limiting today, what do you think they plan to do with money? How do you think they view the money? Do you think that there is a Paypal department of "ethics" that says, we're going to hold this money so we can/until we make sure the buyers and seller are on good terms?

Of course not. The money in those accounts are their legal (or illegal) confiscations. If they limit 10 Million today, its theirs.

If you are one of those sellers, you coming back for your money is nothing but "a slim chance of a future loss".

My point is, these guys are coming to a point where they have to report all that money they are "holding".

IRS is not interested in dealing with 20 Million Joe Schmoes with 200 transactions and 20,000 dollars. That is just more and more human resources. They are interested in 9 or 10 multi-billion-dollar-confiscating companies giving them what they feel they deserve. Which is a cut.

Now for the little guy: (People like you)

IRS is only going to bother you if you flag them. Maintain some assets, move around over 7,000 cash, buy a benz. For the folks who have virtually next to nothing. The IRS does not care.

Last year IRS sent me a bill for 100-500K (rather leave exact number out). This is called a "notice of assessment"

Funny thing is the business they sent the bill for did not even make 1 dollar. I myself have never had my hands on 100K at once or even 50K. Nor have I passed that through a bank in a year's time. I read later that they look up businesses (sometimes in a list) and depending on what information they can find, send you a random bill amount based upon what they found. Sometimes they just make it up right there on the spot.

I simply sent it back and said that I registered the business on accident and I was not using that business entity.

Within 1 month they responded with a "corrected" assessment of $10

I didn't pay that either.

Fact is people like Wesley Snipes or anybody else who is publicly known to be rich have one problem:

Everyone knows they have money.

If you don't own a house, expensive car, or report 50-100K a year already, nobody in the IRS building cares.

IRS works for the IMF. Their job: confiscation of the people's money and assets through taxation.

The IMF is the IRS for the IRS's of the world. Their job: monitoring the IRS. (IRS is just as scared as you, or even more)

An IRS agent is like a salesperson, who gets a commission for every person he gets. If you are don't have anything worth confiscating such as your house, car, or cash in your bank account, then you don't need to be concerned with the IRS.

This is just my view, based upon my experiences and research, yours may be different.

Again, let me rephrase:

I'm not saying do not pay taxes, of course file your taxes...This is not against the IRS or anything. (dont come ****in with me uncle sam, i pay my taxes and my dad mom brother and sister do too, as well as all of the people in my cell phone and all my e-mail accounts).

Once paypal/amazon scans your information through the IRS mainframe, your number will be flagged as having a paypal account that is recieving payments, so your return will be scrutinized for any business profits that you report, or dont report. So if you provided paypal/amazon with an EIN, TIN, or SS number, I would be sure to report all your business earnings for 2011, and after. If you happen to get audited, they will want access to all your bank accounts, and financial records. This will not be pretty. Once you get in their crosshairs..........game over. PAY YOUR TAXES!

I most definitely agree with this. If you DO have your real information logged with them.

What are your specs on individuals with stealth accts?

But then again...PayPal money is not even real money. It is just PayPal credits.

PayPal is actually the merchant who accepts the money, and in turn gives you Paypal credits.

Now when you withdraw it to your bank account, be it business or personal, then the accounting must come into play. And in that case you are actually directly being paid by PayPal and they have to be your only customer, because they are the only ones who actually gave you real currency.

You seem to be very knowledgable in this area Spread, please elaborate on the whole paying taxes on stealth accounts bit. Is it possible?

Yes, please elaborate. I just got hit with "the email"...