Forum

Tax ID request at LOW AMOUNT OF SALES
 

I personally have received the tax ID request as low as 11k and others have reported as low as 8k, but now I think I might have set the record.

225 sales and 5,200 in sales.

Heads up to those who are close to the 200 mark as this tells me they are watching closely the amounts in both categories.

I was told that IRS forced PP to use the "potential" to sell 200/20k so I have followed that rule for a long while but never thought with 5k in sales it would have happened.

As of right now they did not limit the account, most report they limit or hold the funds until you provide it, so I am thinking it will do either one by tomorrow.

Very many of you able to keep selling with no holds after getting this request?

Let us know if they do lock you.

That's crazy Sandy, I guess they (Ebay) are scared up the wazoo of the IRS...I am too but they must really be feeling the pressure.

I have 1 account which has reached 140 sales / $4,500 but I haven't received any message yet...crossing fingers!

I Believe that the Law says, 200 Transactions OR $20,000 in total sales, If Im correct (and I think I am) then with 225 sales,,you were Overdue,,

I have several with far over 200 in sales and have not so far got this.

That is why I am totally surprised.

Maybe it depends if the items are new or used.

I only sell used items on this account.

I was told by a tax master that the irs is holding pps feet to the fire and has them going by the "potential" of hitting either one of these numbers.

This is in the message I got.

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 or services
- 200 payments for goods or services

Of course they are. Fortunes have been made and lives changed drastically all thanks to the relaxed atmosphere they used to have years ago, and it all still remains unclaimed. I only wish I was a part of the history.

I have been told it's 200 items and 20k in sales. Even if you go over 200 sales, you still need to go over $20k in sales. What my tax guy said.

Absolutely NOT what my tax guy said.

His explanation was a seller getting to the 200 sales was going to get a reminder of the IRS requirements.:shhh:

That appears consistent with info we got in early2010 about this.

Re-read this old thread
http://www.aspkin.com/forums/paypal-...-usa-only.html

lol, new tax guy here I come.

It actually is a base number they were told to use but the real deal is the word "potential". If you have the potential to hit either one of those numbers you will get the request.

PP has to be prepared for you to hit those numbers but they are just a base number and now we all know the dollar numbers will be very low if you have 200+ sales.

Hit EITHER one or get close and you will possibly be asked.

Listed some items last night and sold them during the night and this morning and so far no holds.

Guessing the holds will come soon. Might as well keep listing until they do but keep it drained out.

oh ....I guess one account has the potential to hit that limit next month.

I too received the SSN request on one account [which coincidentally was at 5200 in sales!]. I have other accounts at the same level, with no request for SSN.

I think paypal is trying to get a jump on their paperwork. They can start now or be flooded with new information that has to be processed by the end of the year or Jan 2013. Some users will give them their info because they perceive a threat of account interruption. Paypal does what is good for Paypal. It is in Paypal's interest that an account not be interrupted as well.

I plan to keep using the account for the rest of the year until I reach $10k in sales. I will be very surprised if they lock the account unneccesarilly. And if they do, I won't sweat it.

What is law say is a "transaction"? Is it items sold or invoices paid? I have an example below. Thanks

For example, if I have 3 listings on ebay, and each sells individually to 3 separate buyers then I know that those are 3 paypal transactions.

But what if 1 buyer purchases all 3 items I have and pays the consolidated invoice. Is this considered 1 transaction or still considered 3 transactions?

but how long have some gone after getting this email and not providing any info? Ive been going for about a month now.

PayPal requirements are constantly changing.

I received an Tax ID reminder from PayPal for an account that has 0 transactions and $0 sales--no activity--this year.

Pretty soon, to sell anything online they will require tax info to open an account. They will chizzle away a little bit at a time before it is immediately required.

I have cut back on the account taking a chance it will go away with low sales etc.

I was told by a paypal rep that the rule is 200 AND 20k in sales

not one or the other.


Sandy - in 2011 paypal hounded me for my social for months. They did not limit me until I exceeded those number limits pretty well.

I can beat all you guys.. I just receive it about 5 days ago at only 5.5k! But that 5.5K is in 1 month of sales across 3 accounts...

Sounds pretty sweet to me...haha ;) Keep going.

Yeah.. finally getting back on ebay after 2 years of amazon and other sites..

Liking the sales but not the fees

this is what i was thinking... maybe start letting accounts cool for xx amount of days so you never [look] like you have that "potential"

couldn't we all just start opening up stealth accounts under companys that have EINs?

sure all roads lead back to you but nothing illegal about operating as many companys as you want. Then when / if they come knocking for the info.. you have it, and you can keep rolling... you'll just have to start paying tax.

Yes, and that is the SMART way to do it NO matter what you sell

She was wrong or just plain lied. Remember, they have to be prepared for the IRS request and that is what they are doing.

It is the "potential" of you hitting it to get the email. Many of us have got that and not even close to those numbers.

It might not be turned over to them but they got us over a barrel because they (pp) can require your info or down you go in time.

Off-topic but it's funny how you automatically assumed that it was a woman who answered the call.

OMG

I am sorry that I assumed it was a woman. What makes the difference anyway?

I believe I started this thread and for your info when I call, I always get a woman rep, seldom ever a man.

Happy now?

sandy I still hold the record, remember what I told you last time...

I think once you get the request it will always be there...

but im wondering if anyone can provide any data points like....if you got limited for not giving info. Were you above the threshold? Or they just limited you out of the blue?

Nope. A few have reported it went away after letting it sit.

No rhyme or reason but many have reported getting limited after a period of time.

And no, many were not above the amounts.

Again, pp is scared of screwing up and will hit you with it if you have the potential of hitting them.

Letting it sit? Was it used for anything? I sold about 10k in ipads 3 during the launch and thats when I received the request, now im back to selling normal amounts so my gross has dropped like 90% haha. Hopefully that will save me. Im at 14k right now with this account.

hey guys, new to these forums. been selling on ebay for a couple months and so far have about 8k in sales. My items are higher priced items, ive probably had less then 20 sales to reach that number. Do you all think ill be getting some notice from either paypal or ebay regarding tax information? how does it work? what can i expect? sorry if this has been asked before. any informative threads on this topic that you all can point me to?

thanks kinda a noob at this stuff lol

Sorry to reopen and old post.
but I'm getting asked for this on all my stealth accounts, and i will not be anywhere close to even 10,000 on any 1 of 6 accounts. I get asked on every account around 100 sales, reguardless of the amount the account has made.

Anybody getting limited on suspended for not providing the info, or providing stealth info? is the info verified by paypal?

I just got a legit site hosted about 10 days ago, for some of the items I sell on ebay. and had my first sale after 5 days of being up. did all the work myself.

When they ask for your SSN, do you have to call them to give them your EIN if you have one or can you enter it like you would a SSN and it will go through?

There is a place for you to enter it.

I know this thread is a bit older but I wanted to add some info. I have one account that is almost one year old. Like a few days short. And I was asked for a tax id in the summer time (2012) I cut back on sales a bit. And now I am actually in risk of losing it due to dsr ratings (I got super sick and my account suffered drastically for it)
Anyway my point is no limit, every time I log into paypal it says to remove the limitations on your account please provide your tax id. But there are no limits. No holds and I can upload and withdraw funds just like I always have. I think that cutting back on the sales, and the fact that now my ebay account has a lower selling limit due to the dsr ratings helped. They figure if I am only aloud to sell 40 items a month cant be to much at risk.
Hope that helps!