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  #23  
Old 11-07-2014
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Default Re: IRS says TIN does not match name.

Quote:
Originally Posted by morningwood View Post
No, my Paypal account does not match the LLC business name. I have a few different business accounts and none really match. But this account is also the one that brings in the most revenue so that could raise a red flag.
Then this is what would seem to be the problem. If the business name does not match, then it will not verify.

If memory serves, the verification process now in use was not in use prior to reporting becoming required. So if you set it up earlier than required, they probably just accepted the information as is, without the verification. Now, it would seem, PayPal is going back and verifying anything that did not previously verify. This is my THEORY, anyway.

What I would do is change the business name on the PayPal account to match what the IRS has. You can then re-complete the EIN verification process. Since the business name and the EIN should match, that SHOULD solve the problem. Your personal name (the stealth name) should not matter.

If PayPal asks about the name change, I would say it was done previously but that you simply forgot to update the PayPal account which is why the names did not match. I would play dumb and say that you printed out their email for the person who does your taxes and he or she told you to do this to fix it so that everything would be kosher with the IRS, that you were completely unaware of the situation. Sometimes it pays to play dumb.

Edited to add: And the crappy thing about this situation is, this is a guy who is trying to do the right thing, paying his taxes and everything. And the jerks who try to scam are probably left alone. That is how life seems to work.

Last edited by jeffweico; 11-07-2014 at 10:34 AM.
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  #24  
Old 11-07-2014
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Default Re: IRS says TIN does not match name.

Quote:
Originally Posted by motosa View Post
My account was created 2 years ago and yes my sales are above 20k a year the problem is this is a stealth account name last name ssn doesn't exist in real in real so how can I report this to IRS? IRS makes billions the problem will be if my PayPal account gets limit like the say.
If you sales go above $20k and 200+ items, then they MUST report to the IRS.

You CANNOT give ⊗⊗⊗⊗ information to the IRS, to do so is a crime. So, start an LLC, Partnership or Corporation and give it a name. Apply for an EIN from the IRS. You will give them the business name, your real name and your real social security number.

Then, upgrade your PayPal account to a business account. Input your business name into the business section. Then check the box that says USE EIN FOR REPORTING. Finally, do the tax interview and enter your business name and EIN. DO NOT CHANGE YOUR STEALTH NAME! Just the business name.

When PayPal goes to verify, they will be verifying the BUSINESS NAME with the EIN. Your real name is never verified.

If you are unsure about what type of company to set up (LLC, partnership, corporation) you should really get some professional advice there from an attorney or an accountant. The thing is, the IRS has tons of rules, tax deductions, etc. and spending a few bucks now could easily save you hundreds - or even thousands - of dollars down the road.

Doing this will mean paying taxes, of course. But don't worry too much. Some people mistakenly think if they have $100k in sales, then they owe taxes on $100k. But that is NOT TRUE! You only owe taxes on your PROFITS. So, if you had $100k in sales, but just $15k in profits, you would owe taxes on the $15k. And a good tax accountant can reduce that even further, since there are many deductions you can take.

I cannot stress enough the importance of tax accountants. Software is NOT going to get you every deduction you are entitled to, I don't care WHAT THEY CLAIM! I ran software against what my tax guy did, and there was a $350 difference. I asked him about it and he explained everything to me and showed me the deduction the software missed. This is one area where trying to save money can end up costing you money.
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  #25  
Old 11-07-2014
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Default Re: IRS says TIN does not match name.

Just for the record, I have 5 LLC's atached to 5 PayPals. The PayPals have gone over the 200 transaction threshold but not the $20,000 threshold. I have not received any notifications from PayPal regarding my LLC Corporation & EIN

OP and posters, also note that if it is an LLC sole proprietorship or partnership, I believe they still trace back to the individual.
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  #26  
Old 11-07-2014
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Default Re: IRS says TIN does not match name.

Quote:
Originally Posted by bjammin View Post
Just for the record, I have 5 LLC's atached to 5 PayPals. The PayPals have gone over the 200 transaction threshold but not the $20,000 threshold. I have not received any notifications from PayPal regarding my LLC Corporation & EIN

OP and posters, also note that if it is an LLC sole proprietorship or partnership, I believe they still trace back to the individual.
LLC's and partnerships are verified using the EIN and the BUSINESS NAME with the IRS.

Sole proprietorships, since the legal entity is an individual, verifies the name of the individual with the EIN.

All of these things are traceable to the individual if someone wants to look up state records. But that is not what PayPal is currently doing.
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  #27  
Old 11-07-2014
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Default Re: IRS says TIN does not match name.

I was on the phone with the IRS for an hour today. The reason for all of this is they stealth name on your paypal account does not match your real name on the EIN. I have 100% stealth info wi i get banned if i put my real name into paypal and use my stealth address. I know this is risky but they still dont have my banned social security number or anything. Basically going forward your paypal name is going to have to match your legal ein name.
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  #28  
Old 11-07-2014
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Default Re: IRS says TIN does not match name.

Quote:
Originally Posted by ftf101 View Post
I was on the phone with the IRS for an hour today. The reason for all of this is they stealth name on your paypal account does not match your real name on the EIN. I have 100% stealth info wi i get banned if i put my real name into paypal and use my stealth address. I know this is risky but they still dont have my banned social security number or anything. Basically going forward your paypal name is going to have to match your legal ein name.
Is your EIN for a sole proprietorship? If so, then you are correct, your individual name must match the EIN.

I still think there is some confusion here. When talking about a sole proprietorship, your individual name MUST match the EIN. The business name does not matter since it is just a DBA, it is not a legal entity.

But with an LLC, corporation or partnership, there can be more than one shareholder, partner, owner, etc. Only ONE person applies for the EIN. That is why they verify the BUSINESS NAME and EIN only.

If the IRS is doing something new, it is going to create mass confusion, since the person responsible for obtaining the EIN and the person opening the PayPal account could be TWO DIFFERENT PEOPLE and does not indicate that anything is wrong, it is just how businesses are set up.
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  #29  
Old 11-07-2014
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Default Re: IRS says TIN does not match name.

I would add that this has not happened to me and I have over a dozen stealths. No notices from PayPal OR the IRS. Taxes have been reported and paid on all of the accounts.
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  #30  
Old 11-07-2014
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Default Re: IRS says TIN does not match name.

LLC is the way to go, not sole proprietorship. Same with Amazon. Have had stealth account with LLC attached for years no problems. Ironically, never got 1099k from Paypal, but Amazon sent a quasi 1099K one year before I entered any tax info into my account.
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  #31  
Old 11-07-2014
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Default Re: IRS says TIN does not match name.

Yes with all the research im doing the llc seems like the best route but i only have a month to sumbit the info. Sorry if this is a dumb question/statement but if i put my real name on the form and only my real name will that get me banned. All other stealth info is different
I do see any other way to be able to validate your ein as paypal will only say its good if that info matches
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  #32  
Old 11-08-2014
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Default Re: IRS says TIN does not match name.

Quote:
Originally Posted by bjammin View Post
Just for the record, I have 5 LLC's atached to 5 PayPals. The PayPals have gone over the 200 transaction threshold but not the $20,000 threshold. I have not received any notifications from PayPal regarding my LLC Corporation & EIN



OP and posters, also note that if it is an LLC sole proprietorship or partnership, I believe they still trace back to the individual.

Thanks for this info, there's still a lot of confusing information on the forum if those limits BOTH are need it to get a 1099 or if you can get it with only 1, I see a lot of my accounts going past the 200 limit but not the 20K so this is good info to know
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  #33  
Old 11-09-2014
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Default Re: IRS says TIN does not match name.

Quote:
Originally Posted by jeffweico View Post
If you sales go above $20k and 200+ items, then they MUST report to the IRS.

You CANNOT give ⊗⊗⊗⊗ information to the IRS, to do so is a crime. So, start an LLC, Partnership or Corporation and give it a name. Apply for an EIN from the IRS. You will give them the business name, your real name and your real social security number.

Then, upgrade your PayPal account to a business account. Input your business name into the business section. Then check the box that says USE EIN FOR REPORTING. Finally, do the tax interview and enter your business name and EIN. DO NOT CHANGE YOUR STEALTH NAME! Just the business name.

When PayPal goes to verify, they will be verifying the BUSINESS NAME with the EIN. Your real name is never verified.

If you are unsure about what type of company to set up (LLC, partnership, corporation) you should really get some professional advice there from an attorney or an accountant. The thing is, the IRS has tons of rules, tax deductions, etc. and spending a few bucks now could easily save you hundreds - or even thousands - of dollars down the road.

Doing this will mean paying taxes, of course. But don't worry too much. Some people mistakenly think if they have $100k in sales, then they owe taxes on $100k. But that is NOT TRUE! You only owe taxes on your PROFITS. So, if you had $100k in sales, but just $15k in profits, you would owe taxes on the $15k. And a good tax accountant can reduce that even further, since there are many deductions you can take.

I cannot stress enough the importance of tax accountants. Software is NOT going to get you every deduction you are entitled to, I don't care WHAT THEY CLAIM! I ran software against what my tax guy did, and there was a $350 difference. I asked him about it and he explained everything to me and showed me the deduction the software missed. This is one area where trying to save money can end up costing you money.
Can I create a business with my real info? paypal and ebay banned my account for slow and high shipping fees so if in put my real info into paypal they will notice and get banned again, that's why I created a stealth account.
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  #34  
Old 11-13-2014
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Default Re: IRS says TIN does not match name.

I'm in the same boat. Same exact message. With the deadline. I've always filed as sole proprietor. So I think I'm screwed. I have to give them my legal name attached to the EIN to get it to match up properly. And that legal name was the name my originally suspended account was in.
I supposed i could get an LLC rolling but I don't know that I would have enough time and the IRS isn't going to have that info on file until I file next year. So it still wouldn't match up right, right?
I'm starting to panic about this. I've spent six years building this account up and it is a solid money maker for me. And I've paid my taxes on this based on the 1099 issued to my EIN. Even before they were issuing the 1099's I was paying.
Any suggestions are greatly appreciated.
It did seem, from what I read it attachments and links to their message to me, that one option is to not give them the info and then the IRS would just start taking 30% of everything that went into my PP acct. Which I could get back each year, or at least get back the difference between that and what I actually owe, right? Not really an option I want to take, but might be better than losing this great stealth account.
Thought?
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  #35  
Old 12-09-2016
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Default Re: IRS says TIN does not match name.

I have this exact same problem. Can anyone who got this request update what they did to save the account and did it work?
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  #36  
Old 12-10-2016
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Default Re: IRS says TIN does not match name.

Quote:
Originally Posted by trosky View Post
Thanks for this info, there's still a lot of confusing information on the forum if those limits BOTH are need it to get a 1099 or if you can get it with only 1, I see a lot of my accounts going past the 200 limit but not the 20K so this is good info to know
You have to meet or exceed both thresholds (200 transactions/20k gross) in order to get the 1099. If you meet either/or, you do not get one. So let's say you sold something at the price of 30k or more and it's only one that transaction for the year, you may not receive 1099. I personally have had more than 200 transactions but never over 20k in gross so no 1099 ever since they started with the 1099-k forms.
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  #37  
Old 12-10-2016
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Default Re: IRS says TIN does not match name.

Is there an update here? This also happened to me, and I have until Jan 5th! Please help!
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  #38  
Old 12-13-2016
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Default

Quote:
Originally Posted by leajenn View Post
Is there an update here? This also happened to me, and I have until Jan 5th! Please help!
Same here... Hoping for any updates also on how to fix this
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  #39  
Old 12-22-2016
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Default Re: IRS says TIN does not match name.

any update on this ?
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  #40  
Old 12-23-2016
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Default Re: IRS says TIN does not match name.

I am also in the same boat, and need to change the info in my paypal account now and hopefully that is the information paypal gives to the IRS for 2016.
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  #41  
Old 05-25-2017
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Default Re: IRS says TIN does not match name.

Quote:
Originally Posted by sergfro View Post
I got this too on one of my accounts. Been 7 months and still haven't changed it.

Hey so did anything happen?
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  #42  
Old 05-27-2017
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Default Re: IRS says TIN does not match name.

I just received the same exact letter, so is this account pretty much toast?
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  #43  
Old 05-28-2017
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Default Re: IRS says TIN does not match name.

Yep, I've had it happen too, a few years back.

You crossed the 20K and 200 sales limit and they issued a 1099K and it didn't match the IRS records.

They'll be suspending your account soon unless you provide the proper info.

This particular problem won't go away until you provide info that matches.

BTW, jeffweico is absolutely the best, I haven't seen him post for a while, but his info is the best you can get. Go with whatever he says.
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  #44  
Old 11-06-2017
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Default Re: IRS says TIN does not match name.

Quote:
Originally Posted by dallis View Post
Yep, I've had it happen too, a few years back.

You crossed the 20K and 200 sales limit and they issued a 1099K and it didn't match the IRS records.

They'll be suspending your account soon unless you provide the proper info.

This particular problem won't go away until you provide info that matches.

BTW, jeffweico is absolutely the best, I haven't seen him post for a while, but his info is the best you can get. Go with whatever he says.
Hi, I received this notice as well. Just wondering if any of you have just ignored it...Did paypal report to IRS or just block you out of the account? Does anyone know if they are required to report if you fail to respond? Thank You
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