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IRS says TIN does not match name.
 

Hi guys. Have not been here for a while and that's a good thing. My business have all been up and running great until today when I received an email from Paypal. I have a Tax id with my real info linked to my stealth Paypal for years now. Today I got a mail stated "The IRS recently notified us that a combination of your name and TIN on your PayPal account does not match its records". Its obvious i'm not going to send stealth info to the IRS. They are requesting that I send a W-9 with matching info on my stealth account.

Anyhow, I have never been in this situation so I wanted to know what is the best way out. Should I close this PayPal and open a new one? Should I send them the updated information? I have it linked to an Ebay account that I really do not want to lose. If I could link a new Paypal to this account that would be great. Would it be a risk to my Ebay? Is is best to just walk away and call it a loss? What do you guys recommend?

Re: IRS says TIN does not match name.
 

Use another payment gateway like Authorize.Net.

Re: IRS says TIN does not match name.
 

I have never heard of this happening before. Could you post the email WITH PERSONAL INFO BLOCKED OUT? It would be helpful. The IRS is not supposed to, by law, provide PayPal or anyone else with any information. The only thing they are supposed to do is to respond to verification requests with either a "match" or a "no match" code. Usually, when there is a "no match" it is simply because the name was not entered exactly as it exists in the IRS records.

When verifying a social security number, they match your name and social security number. When verifying an EIN for a sole proprietorship they match your name with the EIN. When verifying an LLC, Partnership or Corporation, they are matching the BUSINESS NAME with the EIN.

So, something does not seem right here.

Re: IRS says TIN does not match name.
 

Never heard of that. How exactly does that work?

Re: IRS says TIN does not match name.
 

Hello (name blocked),
Update your W-9 taxpayer information

The IRS recently notified us that a combination of your name and Taxpayer Identification Number (TIN) on your PayPal account does not match its records.

We also sent a notice to you through U.S. mail as required by the IRS. If you have already responded to the mailed B Notice, please disregard this email.

If you did not receive or respond to the notice, it's important that you submit updated W-9 information by December 11, 2014 to avoid any limits to using your account. You can download and complete the W-9 form easily and securely online or mail it in.

To get started, log in to your PayPal account and an alert will appear asking you to update your name and/or TIN. Click submit updated W-9 information within the alert.

Thanks for taking care of this right away.

Re: IRS says TIN does not match name.
 

I see. That may as well be my issue then. The business is a Sole Proprietorship. The Ebay name is not the same as the business name as well. Is there a way to change this?

Re: IRS says TIN does not match name.
 

Most of us use LLC's so that the IRS is only verifying the business name and the EIN, because if they verify your legal name it will obviously not match. My guess is the account was set up with way BEFORE the IRS required the reporting?

How to solve it...

Let me think for awhile. I will post a bit later. Hopefully others will chime in as well. Maybe this has happened to someone else.

My one immediate thought would be to change the EIN with a new one obtained for an LLC, but I am not sure how PayPal would react to that. You could claim your accountant told you to do this so that everything was set up properly???

Again, let me think...

Re: IRS says TIN does not match name.
 

Thanks Jeff. It was done years ago. You seem very knowledgeable about the subject so any ideas would help.

Re: IRS says TIN does not match name.
 

Update: I went through my paperwork and realize my business tax id is actually a LLC. Not a Sole Proprietorship

Re: IRS says TIN does not match name.
 

I got this too on one of my accounts. Been 7 months and still haven't changed it.

Re: IRS says TIN does not match name.
 

I got the same letter
Update your W-9 taxpayer information

The IRS recently notified us that a combination of your name and Taxpayer Identification Number (TIN) on your PayPal account does not match its records.

We also sent a notice to you through U.S. mail as required by the IRS. If you have already responded to the mailed B Notice, please disregard this email.

If you did not receive or respond to the notice, it's important that you submit updated W-9 information by December 11, 2014 to avoid any limits to using your account. You can download and complete the W-9 form easily and securely online or mail it in.

To get started, log in to your PayPal account and an alert will appear asking you to update your name and/or TIN. Click submit updated W-9 information within the alert.
Thanks for taking care of this right away....

This is a stealth account so I added a ⊗⊗⊗⊗ ssn , what if I add another ⊗⊗⊗⊗ ssn? thank for your ideas guys.

Re: IRS says TIN does not match name.
 

'morningwood' thought I had a bug on my screen haha. nice avatar.

Re: IRS says TIN does not match name.
 

Interesting that two different users are reporting an issue.....


http://www.aspkin.com/forums/paypal-...ease-help.html

Seems checks are being vamped up as the accounts are used more & taxes are getting reported.

Be careful of accuracy here is one message that stands out to me.

:ranger:

Re: IRS says TIN does not match name.
 

The members here receiving these messages have you just added your tax ID this year ??

Also if you received this letter and it is on an aged account that you had provided the tax ID maybe a year or two ago and went over the 200/20K did you get a tax form from the IRS on your sales

I'm just trying to see If this is something being done with accounts that just provided a tax id or have the accounts been working with a tax id for some time and already received IRS tax forms and this is now a second check that is being done

Re: IRS says TIN does not match name.
 

Do you have the PayPal account in the name of the LLC? It should be a business account and the LLC Name should match exactly what the IRS has on their records. The easiest way to check is to look at the letter (probably a PDF, but COULD HAVE been sent in the mail) from the IRS showing the information on the EIN when you first applied for it.

If the account is in the stealth name, and you just had added the EIN at the time without making it a business account, that could be what is causing this.

Edited to add: Check to make sure what the IRS has on file MATCHES EXACTLY the business name on the PayPal account.

Re: IRS says TIN does not match name.
 

Hi all! Since this thread is about new IRS, TIN, & LLC & EIN, I hope you guys don't mind me asking few questions regarding business upgrading to business account, LLC and EIN.

Back in Aug. I created a legit account under my mom's name, bank acc. and supplied SS to PP as well. I started selling with Vero items. Got MC999, called in and all went fine. recently got limit raised to 30/3000, good.

Q: Now I want to upgrade this account to business account. I know I have to get LLC and supply EIN to PP. Just wondering if I upgraded to business acc. will Ebay/PP ask for any documents beside EIN, business name ? Many of you have have business account in here, what you guys went through when opened/upgraded to business account? Your input/advice will be highly appreciated. Many thanks in advanced.

Re: IRS says TIN does not match name.
 

Was there a deadline on yours as well?

Re: IRS says TIN does not match name.
 

I added mine over 2 years ago when I hit the 20k mark as of the requirement at the time. The account is about 4 yeard old. I do get my tax forms through the mail from the IRS.

Re: IRS says TIN does not match name.
 

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.

Re: IRS says TIN does not match name.
 

4 of us counting the people within the post. I just read the other guys post and it sounds like the exact problem I am having. Was there even a resolution found in his case?

Re: IRS says TIN does not match name.
 

Thanks. :lol:

Re: IRS says TIN does not match name.
 

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.

Re: IRS says TIN does not match name.
 

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.

Re: IRS says TIN does not match name.
 

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.

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.

Re: IRS says TIN does not match name.
 

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.

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.

Re: IRS says TIN does not match 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.

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.

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.

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

Re: IRS says TIN does not match name.
 

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

Re: IRS says TIN does not match name.
 

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.

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?

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?

Re: IRS says TIN does not match name.
 

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.

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!

Same here... Hoping for any updates also on how to fix this

Re: IRS says TIN does not match name.
 

any update on this ?

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.