Re: Does this mean I cant receive payments / withdraw?
even though the reporting limit is 20K,
paypal calculates and forecasts yout current rate of income into the future, adding some worst case adjustments. If their forecast indicates you might be anywhere near the 20K by end of December, then they'll ask for tax numbers.
Example:
an account that had accumulated $3000 by the month of MAY, got hit with a tax nr request.
An account that received only $1800 by May, did not get hit.
Once this happens, you have about 3 weeks to continue using your account before further action. use this time to divert your funds to a different account.
If you do not reply to the tax nr request, the account usually gets unlimited after about 6 months.
You might use the tax ID of a family member -with their permission, and then make sure you DO NOT GO OVER 18K income by end ov december. Paypal will then not use this tax number in any way.
If you hit something like $18,500 at any time before midnight Dec 31st, , then Paypal will do a test verification with the IRS on your number provided, in preparation of possibly having to file with them.
If you fail this verification, account will be limited for another 6 months.
All this happens even though you never reached the 20K reporting limit.
Last edited by sick-bay; 11-25-2013 at 07:54 AM.
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