Paypal limited for SSN or EIN. What worked last year isn't working this year.

[rsot]

vogeltron, so you have had this reset of accounts after being limited for the 1099k form? That is something

[vogeltron]

Originally Posted by rsot

vogeltron, so you have had this reset of accounts after being limited for the 1099k form? That is something

Yea, it has happened before. Last Dec I had an account limited where I couldn't receive funds or close the account. It was reset at the end of Jan. There is no guarantee it is going to be reset again in 2014 but I know a few other people who have had the same things happen. Just have to wait and see.

[rsot]

Wow that is quite the good hope hah vogeltron.

Still always wise to have backup stealth accounts going to spread sales.

[vogeltron]

Very true. Just is getting ridiculous how many stealth's are going to be needed now. I was cool with the selling to fast 20k thing. But now this getting the can't receive funds or close account when you get to close to 200 transactions is depressing.

[GreenBean]

Originally Posted by rsot

vogeltron, so you have had this reset of accounts after being limited for the 1099k form? That is something

This is not new or new news.

paypal was allowing accounts to reset after the 1099 request.

More reports were in the first 18 months of the new tax rules.

Not hearing as many happening these days.

Expectation is paypal may enforce conforming to the IRS rules on the basis enough time has happened for sellers to be compliant.

[vogeltron]

Possibly, I think if you aren't a shyster and are in good standing. None or few disputes etc. My guess is they will reset the account. eBay/PayPal is still a publicly traded company. They want there profits. While the users affected with this are probably a minority. I am sure when you add them all up it is a huge amount of money they contribute in eBay and PP fees.

My speculation is, that they have to show they are tough on enforcing these laws etc. But as long as they can generate revenue from the accounts. They will continue to do so. Remember as business as long as you have something providing you revenue and isn't causing you problems (i.e. PayPal Disputes, etc) then the account is considered and asset. I do believe they will reset and continue to treat those accounts as such.

[john456]

When you get the EIN number, do you put in paypal right away or do you wait for them to ask it from you?

Or it does not matter?

[GreenBean]

Originally Posted by john456

When you get the EIN number, do you put in paypal right away or do you wait for them to ask it from you?

Or it does not matter?

Your choice of operating usually.

[rsot]

Originally Posted by Greenie

Not hearing as many happening these days.

Expectation is paypal may enforce conforming to the IRS rules on the basis enough time has happened for sellers to be compliant.

Exactly - did not say it was new news, just the reporting frequency seems to be low on this event.

[GreenBean]

Originally Posted by rsot

Exactly - did not say it was new news, just the reporting frequency seems to be low on this event.

Maybe not in open forum.

Been happening but discretion is preferable.

[rsot]

I hear you - best not to get it out for misperceptions

[Jarra]

Quick question, do you need to pay taxes anytime after the request? Or is it just when you hit 20k and 200 items, they send you the form?

I've probably sold around 100 items, but well under $10,000. Thanks!

[GreenBean]

Originally Posted by Jarra

Quick question, do you need to pay taxes anytime after the request? Or is it just when you hit 20k and 200 items, they send you the form?

I've probably sold around 100 items, but well under $10,000. Thanks!

You pay taxes regardless.

Do not think otherwise.

[rsot]

Seek advice of financial professional Jarra

[ateep22]

might be stupid question but the $20,000 i know is gross but is it the gross before paypal fees or after? if i receive $10 and before I receive $10, its actually around $9.40..does it count $10 or $9.40 towards the $20,000?

[vogeltron]

Originally Posted by john456

When you get the EIN number, do you put in paypal right away or do you wait for them to ask it from you?

Or it does not matter?

Personally, I wouldn't do it right away. I would wait until I can establish the PayPal/Ebay as best possible. That way if something heaven forbid does happen you haven't burned your EIN yet.

[rsot]

Originally Posted by ateep22

might be stupid question but the $20,000 i know is gross but is it the gross before paypal fees or after? if i receive $10 and before I receive $10, its actually around $9.40..does it count $10 or $9.40 towards the $20,000?

Seems to be always GROSS - even that 200 transactions...it includes claims that are processed for return of money

[kris3841]

Does anyone know for certain if the PP limits reset Jan 1st? I'm at about 150 transactions ($12k) and worried about getting blocked until I provide an EIN. I was planning on stopping around 190 and waiting til Jan 1st to start selling again. Can anyone verify if this will work for PP? Or AMZN for that matter (I know they have the 50 transaction limit)?

[GreenBean]

Originally Posted by kris3841

Does anyone know for certain if the PP limits reset Jan 1st? I'm at about 150 transactions ($12k) and worried about getting blocked until I provide an EIN. I was planning on stopping around 190 and waiting til Jan 1st to start selling again. Can anyone verify if this will work for PP? Or AMZN for that matter (I know they have the 50 transaction limit)?

look you should take tax advice for this.

Not for the forum to tell you.

We do not know your business plan.

Noone here is qualified to verifiy what you want to know.

Avoid making tax issues for yourself.

[rsot]

Originally Posted by kris3841

Does anyone know for certain if the PP limits reset Jan 1st? I'm at about 150 transactions ($12k) and worried about getting blocked until I provide an EIN. I was planning on stopping around 190 and waiting til Jan 1st to start selling again. Can anyone verify if this will work for PP? Or AMZN for that matter (I know they have the 50 transaction limit)?

Greenie makes a good point.

Another point worth noting kris3841 is that NO two paypal accounts are alike - what I sell is different from what you sell so limits/documentation demanding can be imposed differently based on RISK and how you operate.

[Dmshark25]

I try to spread sales out enough but in the beginning when I didn't have as many accounts I needed an EIN on a couple accounts was hit with them at around $6500.00 and 160 trans .

I always waited because the business plan was to spread sales out enough not to get asked for tax ID. But plans changed a little ,


As far as long term the accounts that look more like a hobby selling 10 items and $6-700 a month are good for long term, they keep out of ur radar and eBays radar , big accounts draw attention , but are nice to have one or two along with everything else working.

Paypal in my cases always gave me a choice of whatever tax ID I wanted and the accounts were not limited . Also if you want to provide an EIN and are not currently using a business paypal they allow u to upgrade your account.


And both times I gave them the EIN within 12-24 hrs after creating it and they always passed , this is 3-4, months later and no problems so as far as if ur not sure if it would register right away, the IRS says it can take 2 weeks to be ready to use for a name verify match but in both cases I used it right away and good. So maybe the IRS tells you to wait as a pre caution or Paypal also knows a new EIN can take up to 2 weeks to register and they could wait to do the check .

Also in both cases received the EIN instantly did everything online and of course u need all ur real info so everything used to get the EIN name, address , ss# was used on suspended account , the one that counts is the business Name So make sure your Paypal business name and the business name u give the IRS are exact match , this is what they check for .

I always had it in mind never to use an EIN as I said but my plan changed and decided. To wait until asked. As long as u slow ur sales or stop they won't limit ur account right seas the first time I just stopped selling , I may have made $150 more in 2 weeks on the Paypal and was never limited and than after 2-3 weeks I added it

I'm sure if u keep selling strong after the request they will limit you so , best thing is to stop selling or if u have a Paypal with $3000 in sales I would begin to prepare if u plan on using it further and have the ID Ready if asked . And if your already at the point where ur accounts are doing well no Paypal holds ebay increases and u do get the EIN in advance just wait till asked, because we all know how unpredictable Paypal and eBay are , why burn a good tax ID.

That being said i also want to try opening a fully verified and confirmed paypal account with an EIN from the start, I'm curious to see if the holds are lifted sooner and raises given quicker so I'm already planning to build an account like this.

I know on my first ebay / Paypal account i did this except I used a SS# for the Tax ID and the holds came off after 5 weeks of selling and I was raises to 100/5000 within a month , so I want to see if the same will happen using an EIN

Once Paypal has your tax ID they feel more comfortable because they now can hold u accountable financially when u provide an official Tax ID , so it would be nice to make an account now and have no holds and nice limit by beginning of December. This time last year I created my first account all real with SS# and didn't sell on it till around NOV 12 I think and by December no holds and I had ebay increase the selling limits automatically without calling to 100/$5000. But again this was with a SS# I want to experiment and see if I get similiar results with an EIN

[kris3841]

Thanks for the tips... these next months are going to be crazy but I'm going to try to get a few EINs in case my accounts get put on hold. I'm still experimenting with limits so that is why I really was curios about when they reset and if it is Jan 1st.