Forum

Tax ID ?
 

Paypal is now asking for a tax ID. Has anyone dealt with this before?

New account? old one. Did you hit the 20k mark? Stealth account or your real info? what did the email say.

You may have to go get one for them. Reply with those things and I will help you out. Thanks

Of course.

We use SEARCH here.

We read the replies.

We work out the answers.

Have you been on earth lately? :rolleyes:

Man oh man, this OP has been seriously out of the loop for a long a*s time if you had no idea they do this. Is this the first time on the internet for you?

Can't we just answer his question?

You guys spend so much effort belittling new people instead of helping. Sure, his question has been asked before..... but come on. He's asking for help, and not being rude about it.

Answer: Search button.

Yes RRonald, I've dealt with this many times. Are they asking for a tax ID or a ssn? Is your PayPal account set up as a business? If so, what kind? llc, sole prop etc.... How many transactions have you done and what's your gross sales volume?

Are they asking for ANYTHING else other than a tax ID?

PP asks you for it if you reach a certain number of items sold or amount of money. Geeting an EIN is free and easy. Just go to IRS.gov.

That's not the only situation where they will ask for a tax ID. And it may not be that simple. the op could need a tax ID for a business he hasn't formed yet. Or it could be a personal account and he told them he's an immigrant..... and yeah, it might be easy to get it, but if you do it incorrectly it could be a lot harder in the long run.

Tax ID
 

Guys, this is what they sent me. I only sell sports jerseys and in no way have I made even 2 thousand last year. I may have sold 200 jerseys but not this year. Also, the paypal account was purchased from this forum. Any help would be much appreciated..By the way, its a personal account.
We're asking for your tax ID number due to new IRS rules. Your tax ID
number is one of these:
- Your Social Security number
- Your Individual Tax Identification Number
- Your Employer Identification Number

We'll use your tax ID number to send tax Form 1099-K to you and the IRS
when the payments you receive exceed both of these milestones in a calendar
year:
- $20,000 in gross payment volume for goods and services
- 200 payments

We want to help you continue to sell with PayPal and to avoid any
interruption to your account. It's easy — here's how:
1. Log in to your PayPal account.
2. A message will appear asking you to update your information.
3. Click Provide Now.

If you have multiple PayPal accounts, repeat these steps for each account.

We appreciate your help in complying with these IRS rules. For more
information, please see our FAQs on the IRS reporting requirements:
www.paypal.com/irs

payapl are applying the new IRS rules in a random manner. Some users have had this email. Others have not.

Part of the problem is the shock of getting such an email in the 1st case. It's not insurmountable truly. :juggle:

It sounds like they want your SSN for verification and they're using the Tax ID as an excuse. Jerseys are considered high risk. Is your paypal set up as a business?

actually, now that I think of it, I don't feel like helping, use the search button :juggle:

Read the forums...too much unknown information like whether it is a stealth or real account, etc..Buy the stealth guide. It is VERY informative! :pop2:

You made 20k selling jerseys? Your own website or auction. Id say you are pretty lucky to make it so far...lol

the op bought the stealth guide

And no offense to Aspkin, it doesn't cover this subject so much.

Doesn't matter if it's a stealth account actually.... the point in stealth is to make a new account, not always one with bs info on it. Even if he did make it with bs info, he can get a dba certificate and get a tax ID in a few days.

Are you saying to search because you don't know what to do?

He said he maybe took in 2000 in sales..... they don't always ask for the tax ID or ssn when you come close to the tax reporting limits anyway. Jerseys are a high risk item, it's very likely that they asked for it because of what he's selling.

http://www.renovate.com.au/_images/sandpit.jpg

Topic is about a TAX ID request. That and that only. Keep it civil.:doh:

If you are selling jerseys then its not a leisurely type of selling. You are a business, get the EIN and post it to paypal. Anything other than that you are just wanting to avoid paying your share of taxes. Its very simple.

You don't need a tax ID in order for paypal to report your gross earnings. They could actually report all earnings of all people, just like I can report earnings of someone I pay less than 600 dollars, those limits are just when they're required to do so.

You can't just throw a tax ID up there, especially if you didn't plan for it.

Exactly. You guys need to understand what it means to get a tax ID. Its not just a paypal pacifier.

Plus soon you will see much much lower reporting requirements for paypal and banks. Just watch. This 20k thing is just a test from the things I have researched about it.

If your banking the profit from jerseys I think you getting then paying the taxes is no bigger deal then paying your fees. Should start withholding now for when the time comes.

Thank you !
I couldn't agree more.
I think some folks up here should eat a slice or two of humble pie.