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Old 05-09-2013
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Default Paypal asking me for SSN because of IRS

So I'll be honest this account is a stealth account and I don't have a SSN to boost with this account. I have been selling on it successfully for about 6 months. But now it seems because of the new law requiring that the IRS get your SSN from paypal. I'm kind of stuck. Are there any other options I can do other than linking a SSN on to this account?
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Old 05-09-2013
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Sadly, not really - when PP asks for SSN these days...they are pretty hard about it. You will be limited and will have to wait 180 days if you cant meet their requirements.
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Old 05-09-2013
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This is not a new law.

Plenty of info here about what this is all about.

Search for some post about this and you will get some good info on it.


May I ask since this is only May how much items have you sold and for approx how much because the threshold was told to be 200/20k and people have got hit with it for as low at 5,200.00.
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Old 05-09-2013
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Quote:
Originally Posted by lamegeek999 View Post
So I'll be honest this account is a stealth account and I don't have a SSN to boost with this account. I have been selling on it successfully for about 6 months. But now it seems because of the new law requiring that the IRS get your SSN from paypal. I'm kind of stuck. Are there any other options I can do other than linking a SSN on to this account?
It is not a new law.

Got announced in 2009 that paypal and other payment processors need to work with the IRS for tax purposes.

Here's the first thread that outlines everything:
http://www.aspkin.com/forums/paypal-...-usa-only.html

Much has happened since then.

You could consider getting an EIN to give to paypal to attempt to bypass the SSN requirement.

Could you post the specific message from them please?

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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 or services
- 200 payments for goods or services

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, see our FAQs on the IRS reporting requirements:
www.paypal.com/irs

Sincerely,
PayPal

Thats from my email






We're asking for your US tax ID number due to new rules from the IRS. You can find more information about the new tax rules and why we're asking for this information at www.paypal.com/irs.

Please provide this information today, so you can enjoy uninterrupted use of PayPal.

thats on the paypal website
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This is what they started sending out 2+ years ago.

It is not new and they did not change the wording.

Trust us, not them, this is not new at all.

Did you read the multiple threads about this going way back asking about the exact same thing yet?

We have been discussing it here for several years.

Never trust the "wording" in anything pp sends you.



Quote:
Originally Posted by lamegeek999 View Post
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 or services
- 200 payments for goods or services

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, see our FAQs on the IRS reporting requirements:
www.paypal.com/irs

Sincerely,
PayPal

Thats from my email






We're asking for your US tax ID number due to new rules from the IRS. You can find more information about the new tax rules and why we're asking for this information at www.paypal.com/irs.

Please provide this information today, so you can enjoy uninterrupted use of PayPal.

thats on the paypal website
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I was wondering if I used a service like bidpay could I avoid having to use paypal therefore I wouldn't have to give paypal my ssn anymore?
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Quote:
Originally Posted by lamegeek999 View Post
I was wondering if I used a service like bidpay could I avoid having to use paypal therefore I wouldn't have to give paypal my ssn anymore?
If they have already asked for it then it is too late. They will let you continue for a while then limit the account at some point.

Also, getting people to pay through other means sometimes can be a job.

Bidpay? Gosh I have not heard that name in a long time.
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Old 05-09-2013
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Quote:
Originally Posted by lamegeek999 View Post
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
Thank you for posting the notice.

This gives you alternatives which might resolve the issue.

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Old 05-10-2013
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If you get the notice when you log into PayPal every time it means you have been selling too much. Especially this early in the year. I would suggest pulling your listings and spreading out sales amongst other stealth accounts.

If PayPal projects you are going to come close to the 20k limit then they will continue to pester you for this. If you continue to sell at the rate your are then they will limit it sooner than later.

Depending on how much you have sold you could probably start selling again in on the account in a few months. I suggest creating a spreadsheet with the amount of funds you receive each month from PayPal and keeping track of where you are at for the year.
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There are many threads on this subject that will help you understand the important reason to spread sales out over multiple accounts.

When someone gets hit with the request as low as 5,200.00 in sales then you had best be on top of it like Vogeltron suggested.
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ok so feed paypal whatever info they need and keep on going.............

if you wish to make money and not pay taxes...... find another operation.

if you made 50,000 at a job would you not pay tax on it? sure you would... how is this any different?

avoiding tax is the same as tax fraud......not smart.

keep it up and you'll see why IRS agents carry guns and cuffs.
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To make it easy on some people to understand.

You can have 1000 accounts moving and selling but in the end you need to hire a book keeper to keep your books for you.

Hire a tax professional to do this correctly.

100 accounts sells 50,000 in a year.

You do like everyone else in business, hand the book keeper the paid outs, sales, etc etc and let them do your taxes.

No one here is telling anyone to avoid anything at all.

Pay your fair share of taxes, if you earned it pay it.

For me I like to spread sales over multiple accounts to make it simple.

In the end, all purchases, deductions, sales are turned into my book keeper every month.

Consult a tax professional for all your tax questions.
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Old 05-10-2013
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When PP asks for SSN, they are KNOWN for not budging - ppl have tried to provide EIN instead and pp straight up says no - SSN or limitation stays. So much for alternatives.
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Quote:
Originally Posted by rsot View Post
When PP asks for SSN, they are KNOWN for not budging - ppl have tried to provide EIN instead and pp straight up says no - SSN or limitation stays. So much for alternatives.


The OP provided a copy of the email of what paypal wanted.

He got OPTIONS.....

Nowhere was it SSN provided specific.

You are correct with other limitations that the SSN only will do.

In this case, unless the email is wrong there is a chance of other methods that could be used.

For many users with USA accounts, the EIN has been allowed for tax purposes. I have done this with my USA accounts.

I checked further with the OP to see if there was a remote chance of alternatives.

To me it appears there are. He would be prudent to consider them rather than surrendering to paypal

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Old 05-11-2013
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Quote:
Originally Posted by rsot View Post
When PP asks for SSN, they are KNOWN for not budging - ppl have tried to provide EIN instead and pp straight up says no - SSN or limitation stays. So much for alternatives.
There are no alternatives for Stealth accounts. If they ask this early in the year is means you are selling too much. All the emails and reminders is based on a formula if you are going to go over the 20k threshold or come to close to it.

This is why you run multiple stealth accounts and spread your sales out accordingly.

Also no advice given is to avoid taxes. It is to help people who have to run stealth's be able to continue to sell on eBay without interruption from PayPal due to this law.

Either way you put it, for US accounts any earned income by law is suppose to be reported.

I agree with Sandy D. Keep good records of sales and expense and everything else. And you will be fine.
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Can you simply create a new Paypal account under other name and link it to your Stealth eBay Account? Or both stealth accounts must be on the same name?
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Old 05-11-2013
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if paypal ever tells me im selling too much i will take a 3 month break from that acct, add up how much ive sold, and determine how much to sell for the rest of the year as to not go anywhere near 20k
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Old 04-30-2015
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Default Re: Paypal asking me for SSN because of IRS

I just got this message on one of my accounts. I thought the threshhold was 200 transactions, I've only got 166 transactions on this account and they sent the notice.

I'm going to make sure the fees are paid and paypal is empty and move on. I guess it's time to make more accounts.

This account is exactly 5 months old, sales of $3,886 and 166 transactions.
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Old 12-23-2015
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Default Re: Paypal asking me for SSN because of IRS

I swear it literally pisses me off how stupid the junior members are on this subject, as well as the long time stealth users who claim to be pros when it comes to eBay and PayPal stealth. Now I myself have a few questions that I am surprised no one has asked or answered, and shame on you experienced stealth users for not bringing up the topic. However before I ask my question I will just post some answers to common questions I see new users constantly asking regarding this matter. And again shame on you junior and senior members for not knowing what the h3ll you are talking about when answering this questions.

Now first and foremost let me start off by saying; Not wanting to pay taxes and Avoiding paying taxes is Not tax fraud. It is only seen as tax fraud by those Uncle Toms who have a physical job where taxes are automatically taken out of there paycheck, and since they have no control over the money stolen from them, they have to constantly convince thereself it's a good thing, they are good people, and since they got robbed it is only fair for everyone else to get robbed to and pretend they are adults paying for highways and so forth. You can rephrase it anyway you like, If you claim to work for yourself, but you are forced to make annual payments to someone of authority, I'm sorry to tell you but you do not work for yourself. You my friend have a boss. I am all for not paying what I earn to anyone. I can understand if you are employed by a business and they require you to pay taxes, than it is perfectly justifiable to be held accountable to the rules of that business if it includes reporting taxes, however in this dog eat dog world where rich get richer and poor get poorer, and you especially if poor or once were find some kind of miraculous "1 out of Million" way to employ yourself, you should be proud and happily refusing to give any percent of your earnings away, especially for a use that you have no control over. Now this is not the right time or place to go on about Taxes and my opinion on them, so I'll leave the subject alone, but if interested you can always view my profile for more info or similar post on the subject. Now that we got that out the way I'll provide some answers to common questions below.

PayPal states they require Tax info before you reach 200 sales AND $20,000.00 in Earnings in a calendar year. Notice the keyword "AND" however PayPal is just like politics, they do whatever they want and they word their doings in a way where they can get away with what best benefits them. So If You Ask When Will PayPal Limit Your Account? The short answer is whenever they want to, The long answer is they do not have to abide by the 20/$20,000 threshold on there website. For Example If you make 175 sales and just $200.00 earnings in a year PayPal will still limit your account, and when you call them to remove it they will say something like “We will limit your account if you are close to passing either 200 sales “OR” $20,000.00 earnings annually” Now notice the Keyword changed to “OR” this time. That is because PayPal terms state the IRS requirements is 200 sales AND $20,000.00 earnings within a year, however PayPal intentionally do not disclose what their requirements are regarding earnings, because if they have set requirements they would have to abide by them and not setting any requirements allows them to freely manage accounts how they see fit. Since they have not stated a set threshold in which they will require your IRS info to meet the IRS requirements, they can limit and un-limit any accounts at will. So in summary like all other business, PayPal want as much authority over there services as possible. And another thing it does not matter how long or old the account is, you can make receive the 175 sales all in one month or one day you are still going to get the limitation solely because you came close to 200 sales, which works the other way around as well If you receive about $15,000 in earnings and only 25 sales. Another questions that was never answered or asked is starting January 1st of next year will your sales and earnings limit reset to receive an additional 200 sales or $20,000.00 on top of the earning already in the account from last year, and the answer is simply YES. This is absolutely true however the same vulnerability from the previous year still applies to the new year. Meaning if you have $10,000 in your account from last year and in the new year you make an extra $10,000 in earnings and 175 in sales putting your paypal balance at $20,000, and sales at 350, your account will not be limited for having a balance of $20,000 or a lifetime sales over 200 sales. It will not be limited because you only received $10,000 for the new year however your account will be limited for receiving 175 sales for the new calendar year just as it was last year.

And now for the moment of truth, the PayPal question that I have regarding this topic is simple and if you are a real eBay and Amazon Stealth pro you should have been ran into this problem, and asked or answered this question on the forums a long time ago. So as we now know, if your account has not been limited yet and you have not passed any threshold, you can just wait for the next year to begin for your limits to reset and return to selling as normal as can be, and continuing this process thus keeping your PayPal account for as long as possible and avoiding interruptions in service. So my question to you stealth pro’s is, What about if your account was already limited before the year ended, It’s a basic limitation that only prevents you from receiving any more funds until you provide paypal with tax information. If you wait for the next year to begin, sure your limits will reset as well as any other account, however What about the limitation that blocks your account from receiving funds?, Will PayPal remove this limitation with no questions asked simply because it’s a new year and everyone else’s limits have been reset or do this mean once PayPal asks for this information they are not going to let it go? Even if you have not passed the IRS threshold. This is a very very good question and I am surprised I have not seen it on the forums yet, because if the limitation can be removed just that easy this solves everyone’s problem who posted on this thred, because you can just wait for the new year to begin. Furthermore regarding my hypothesis, as you all may see I am posting this post on December 23rd, 2015 so I am in the process of finding out the answer for myself and I’m sure some of you who have received this limit can call PayPal up on January 1st and to find out as well, I expect different people will get different results but even if one person is able to remove the limitation with this process I'd say save the service number of that call and hold onto it as proof for which can help with future accounts, and even record the phone call if possible. I will post an update to share my results with everyone but in the meantime if there’s any pro eBay Stealth users out there who want to share a piece of mind with us by any means please do so by giving us you oh so greatly achieved experience in this particular situation. In the meantime so long for now. - Technokidd1

Last edited by technokidd1; 12-23-2015 at 11:34 PM.
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  #21  
Old 12-24-2015
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Default Re: Paypal asking me for SSN because of IRS

I swear what pisses me off more is a long post that is without parapgraphs.

Hence this

TL:DL

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Old 12-24-2015
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Default Re: Paypal asking me for SSN because of IRS

WTF kidd? Nobody here wants to proofread your novel. Couldn't you have posted your little rant in your own thread, rather than reviving a thread from 7 months ago?!?!
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