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US Bank Account,IRS, ACH and Paypal
 

Hello
I have some question, maybe someone can help.

I have some money in my Paypal account (10,000+) that I want to transfer to my bank (bank of america)
my paypal acc is verified, i have transferred money before, (a couple of hundreds)


1- Should I transfer all the money at once??
2- I know if you hit the limit of 10,000 in CASH deposit, the bank sends a report to the IRS..does this apply for ACH transfer also??
3- whats the best way to transfer money to bank without being flag by paypal, example:less than 1000 every week??


thanks =}

you WILL be limited immediately if you try to transfer even a quarter of that to a bank account.

It's insane that you would even leave that amount of money in a paypal account

Nonsense.

Paypal would not limit you for bank withdrawals if you've received these funds after a reasonable amount of time, and are legitimate funds.

thanks for the reply,

I have been receiving this money for several months, from eBay sales, i have 100% positive feedback and always ship items with signature confirmation to avoid any problem.
I have received some charge backs from credit card companies, but since I ship with signature confirmation paypal releases my money the same day.

what about my bank? if I transfer all the money they will report the transaction??

thanks

I have found when i withdraw a large sum from paypal, it usually trips the security check which times out after 72hours and then gets transferred anyway.

So since your account is reasonably old, it shouldn't be a problem. However it might look suspect if you withdraw the whole $10000.. so i would do it in random amounts to be safe, because if you dont withdraw for 7 months and then next thing you withdrawing the whole $10k.... you get my point

Correct figure is $5000.
Dont forget if you earn money, you pay taxes :)

I got your point, and yes my paypal account is like 6 years old and never had a problem with it.

well I'll withdraw the money in parts to avoid any problem.


@GreenBean™ ..what you say is: If I transfer more than 5000 to my bank, they will report the transaction to the IRS??, thanks

ACH deposits are not considered cash and do not trigger the Cash Transaction Reporting. HOWEVER - your bank is obligated to report ANY suspicious transaction over $5,000 regardless of the source of funds. Will your bank view it that way? Who knows. The law is written so broadly, almost ANY transaction could be considered suspicious. But if your bank account has been linked to the PayPal account for a long time, it would probably look OK, even with a large amount.

Still, Greenbean is correct about the taxes. The filing of a CTR or SAR does NOT mean you have done anything wrong or that you are in any trouble. But if the IRS finds income that you did not report, then you are in for a whole WORLD of TROUBLE! As long as you are propertly reporting and paying your taxes, and the money involved is from normal eBay sales, you should be just fine.

thanks for the advice :thumb:

transferred all the money to my bank without any problem,
amounts under $1000 ;)


thanks

was this a ssn verified paypal account?

I agree 100%. I just transferred $23,546 and received my money exactly 31 hours after i transferred it. I Have done this at least 8 times a year or more with this amount or larger.. I Never even received a call asking if I made any transactions or to verify last 5 transactions. Nothing.

good luck though....