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Old 04-10-2015
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Default Regarding SSN requirement when hit or close to 200/$20,000 limit

Not sure if this has been thoroughly discussed before since I did not find the post for this. Any experience will be appreciated.

I know Paypal will need SSN when you reach 200/$20,000. But is there a specific threshold that they start to ask for SSN like 180/$18,000 or only when you reach either 200 or $20,000.

This 200/$20,000 is gross receipt minus refund, right? Does refund counts towards transaction number?

If they ask when you reach 200/$20,000 with this clean cut then it is easier to control. But if they starts when you close to those number while there is no exact number such as 175/$17,500 or 180/$18,000 then it is hard to predict. In this situation, if the account has not reached 200/$20,000 (for example it is close to $18,500) and they send request for SSN, can I just ignore them and stop using this account this year and wait for new year. Is my Paypal account dead or I can reuse them next year?

Thank you for your time.
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Old 04-10-2015
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Default Re: Regarding SSN requirement when hit or close to 200/$20,000 limit

From my experience with about 20-30 accounts I had received SSN requirement you receive it from either 200 or $20,000 but it is not exactly 200, it starts at about 170-180 and whatever $ you have sold. It counts every single transaction including the ones you had to refund,adjust etc. If you have already received the SSN notice then the account is done, I believe it will not go away until next year however you have to get 3 (3rd being last as it is when you get shut down) notices before they completely lock the account down. You can apply for EIN LLC (partnertship) and get it within a week and then upgrade the paypal account to business and attach that EIN and resume selling. But if you dont plan on doing the EIN step then just NEVER EVER reach 170-180 items or i would say $15,000 (I have never hit close to 10k with 170-180 transactions, so I am assuming this) and let the account cool down until next year (december-january), which is a fiscal year.
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Default Re: Regarding SSN requirement when hit or close to 200/$20,000 limit

Why not just upgrade the account to business and get an EIN?
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Default Re: Regarding SSN requirement when hit or close to 200/$20,000 limit

Quote:
Originally Posted by skyline View Post
Why not just upgrade the account to business and get an EIN?
Any fee for EIN? Is it like a corporation that you have to pay $800 in tax no matter if you have sales and also you will have to file tax return no matter if you make money?

Thank you.
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Default Re: Regarding SSN requirement when hit or close to 200/$20,000 limit

I am still trying to figure out this 200/$20,00 is or/and relationship. Did you ever had problem that sales is $60,000 while quantity is still for example 100 transaction? Will this problem. Some people said it has to be both condition met while the other said it is one of the condition that will trigger the SSN requirement.

Quote:
Originally Posted by epimetheus039 View Post
From my experience with about 20-30 accounts I had received SSN requirement you receive it from either 200 or $20,000 but it is not exactly 200, it starts at about 170-180 and whatever $ you have sold. It counts every single transaction including the ones you had to refund,adjust etc. If you have already received the SSN notice then the account is done, I believe it will not go away until next year however you have to get 3 (3rd being last as it is when you get shut down) notices before they completely lock the account down. You can apply for EIN LLC (partnertship) and get it within a week and then upgrade the paypal account to business and attach that EIN and resume selling. But if you dont plan on doing the EIN step then just NEVER EVER reach 170-180 items or i would say $15,000 (I have never hit close to 10k with 170-180 transactions, so I am assuming this) and let the account cool down until next year (december-january), which is a fiscal year.
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Default Re: Regarding SSN requirement when hit or close to 200/$20,000 limit

From my experience I was only able to get to the item amount, which was near 200 in about 20-30 times and it was done with $1-20 dollar items, so I can assume that when it reaches 200 (which is the reported amount by Paypal) then you get triggered with SSN requirement however when Paypal collects it, it doesnt get reported to IRS until you reach 200 AND 20,000; it is stored with Paypal ONLY. So, regarding your question I believe there is no answer anyone can give as not many people tested it out but I have read that some people got hit with SSN after $7,000 (not sure about item limit) but in my case I have never reached $5,000 as far as I remember, only in items. I am more than positive that you will not be able to reach above $20,000 without getting SSN triggered.
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Default Re: Regarding SSN requirement when hit or close to 200/$20,000 limit

$^$^%)**^%")$ &%%$"^&$ ** %"$





ipad losing charge

BBL.

Last edited by GreenBean; 04-10-2015 at 10:01 PM.
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Old 04-12-2015
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Default Re: Regarding SSN requirement when hit or close to 200/$20,000 limit

So in this case, it seems to me will be either 200 transaction or $20,000 that Paypal will start to request SSN, right?
Do you always provide them EIN or just ignore them and let the account sit there till next year?

Thanks.

Quote:
Originally Posted by epimetheus039 View Post
From my experience I was only able to get to the item amount, which was near 200 in about 20-30 times and it was done with $1-20 dollar items, so I can assume that when it reaches 200 (which is the reported amount by Paypal) then you get triggered with SSN requirement however when Paypal collects it, it doesnt get reported to IRS until you reach 200 AND 20,000; it is stored with Paypal ONLY. So, regarding your question I believe there is no answer anyone can give as not many people tested it out but I have read that some people got hit with SSN after $7,000 (not sure about item limit) but in my case I have never reached $5,000 as far as I remember, only in items. I am more than positive that you will not be able to reach above $20,000 without getting SSN triggered.
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Old 04-12-2015
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Default Re: Regarding SSN requirement when hit or close to 200/$20,000 limit

Quote:
Originally Posted by wendychen2000us View Post
So in this case, it seems to me will be either 200 transaction or $20,000 that Paypal will start to request SSN, right?
Do you always provide them EIN or just ignore them and let the account sit there till next year?

Thanks.
If you have already received the SSN notice then the account is done, I believe it will not go away until next year however you have to get 3 NOTICES (3rd being last as it is when you get shut down) notices before they completely lock the account down. You can apply for EIN LLC (partnertship) and get it within a week and then upgrade the paypal account to business and attach that EIN and resume selling. I always provide EIN since I start off with good limit accounts and I am past the stage of having 100s of accounts. I only plan to manage about 10 accounts at most, so EIN is convenient in my case.
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Old 04-12-2015
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Default Re: Regarding SSN requirement when hit or close to 200/$20,000 limit

I am in the USA. I reached 190 with only $1700 and received the notice. I went on interent and got a Floirda EIN in 15 minutes. Free? Sent to Paypal and all is well. Different Company name from paypal account but no issues.
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Default Re: Regarding SSN requirement when hit or close to 200/$20,000 limit

I'm new to this game, do I need an EIN in the State I live in? oes the EIN have to match what paypal has as my address?
Thank You
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Old 04-13-2015
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Default Re: Regarding SSN requirement when hit or close to 200/$20,000 limit

Hi guys,

Jsut got this too:

Dear
,
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
Yours sincerely,
PayPal"

I think I passed both 200 and 20000$. Probably over 40000$ this year already.
Can you please give me advice what to do. I need to keep this account working. This is not stealth and the only problem is that I'm not a US citizen and I don't have SSN or any US identifier. Would it be ok to provide them with EU tax number? I have business account, but on european company.
Thanks

Goran
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Old 04-13-2015
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Default Re: Regarding SSN requirement when hit or close to 200/$20,000 limit

Quote:
Originally Posted by GDI View Post
Hi guys,

Jsut got this too:

Dear
,
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
Yours sincerely,
PayPal"

I think I passed both 200 and 20000$. Probably over 40000$ this year already.
Can you please give me advice what to do. I need to keep this account working. This is not stealth and the only problem is that I'm not a US citizen and I don't have SSN or any US identifier. Would it be ok to provide them with EU tax number? I have business account, but on european company.
Thanks

Goran
You can get EIN and you wont need any ID. I myself as Canadian have opened many EIN LLC in US. The website is Apply Online For An EIN Number - Employer Identification Number. It will cost you $175.
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  #14  
Old 04-15-2015
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Default Re: Regarding SSN requirement when hit or close to 200/$20,000 limit

I would also like to know if you told them that you do not have SSN, what's gonna happen?

Thanks.

Jsut got this too:

Dear
,
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
Yours sincerely,
PayPal"

I think I passed both 200 and 20000$. Probably over 40000$ this year already.
Can you please give me advice what to do. I need to keep this account working. This is not stealth and the only problem is that I'm not a US citizen and I don't have SSN or any US identifier. Would it be ok to provide them with EU tax number? I have business account, but on european company.
Thanks

Goran[/QUOTE]
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  #15  
Old 04-15-2015
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Default Re: Regarding SSN requirement when hit or close to 200/$20,000 limit

Will there any tax problem when you file tax return while 1099 has stealth name?

Thank you.

Quote:
Originally Posted by epimetheus039 View Post
You can get EIN and you wont need any ID. I myself as Canadian have opened many EIN LLC in US. The website is Apply Online For An EIN Number - Employer Identification Number. It will cost you $175.
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Old 04-15-2015
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Default Re: Regarding SSN requirement when hit or close to 200/$20,000 limit

Any post do you recommend for step by step instruction of how to apply EIN on this website for stealth account? Shall we apply with our SSN or as non US resident, etc.?

Thank you.

Quote:
Originally Posted by epimetheus039 View Post
You can get EIN and you wont need any ID. I myself as Canadian have opened many EIN LLC in US. The website is Apply Online For An EIN Number - Employer Identification Number. It will cost you $175.
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  #17  
Old 04-15-2015
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Default Re: Regarding SSN requirement when hit or close to 200/$20,000 limit

Quote:
Originally Posted by wendychen2000us View Post
Any post do you recommend for step by step instruction of how to apply EIN on this website for stealth account? Shall we apply with our SSN or as non US resident, etc.?

Thank you.
You really need to stop asking strangers on a forum how to handle YOUR business.


Have you spoken to a tax professional about making sure all your IRS needs are being looked after OK?

The game differs for each and every person.

It is stated previously here to take professional tax advice.

I suggest you go to

Internal Revenue Service

User friendly and free to use.

You can not assume info here is accurate so stop thinking that way.

__________________
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