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Old 07-01-2012
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Default 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?
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Old 07-01-2012
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Let us know if they do lock you.
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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!
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Old 07-01-2012
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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,,
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Quote:
Originally Posted by slapped View Post
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.
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Maybe it depends if the items are new or used.
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Quote:
Originally Posted by marysman78 View Post
Maybe it depends if the items are new or used.
I only sell used items on this account.
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Quote:
Originally Posted by slapped View Post
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 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
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Quote:
Originally Posted by Sandy D View Post
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.
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.
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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.
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Quote:
Originally Posted by yotano211 View Post
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.

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
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lol, new tax guy here I come.
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Quote:
Originally Posted by yotano211 View Post
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.
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.
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Quote:
Originally Posted by unkown5454 View Post
Let us know if they do lock you.
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.
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oh ....I guess one account has the potential to hit that limit next month.
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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.
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Old 07-02-2012
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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?
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Old 07-06-2012
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but how long have some gone after getting this email and not providing any info? Ive been going for about a month now.
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Old 07-09-2012
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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.
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Old 07-09-2012
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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.
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Old 07-10-2012
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Quote:
Originally Posted by user3657 View Post
but how long have some gone after getting this email and not providing any info? Ive been going for about a month now.
I have cut back on the account taking a chance it will go away with low sales etc.
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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.
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