Anyone drop and start new accounts as soon as the 200/20k limit hits? - eBay Suspended & PayPal Limited Forums
eBay Suspension & PayPal Limited Forums  
Join Today
Register Subscribe
     

Registration is fast, simple and absolutely free so please, join our community today!


Go Back   Home > Marketplace Discussions > PayPal Talk

PayPal Talk PayPal Forums. General issues related to PayPal.

Reply
 
Thread Tools
  #1  
Old 06-24-2015
Junior Member
 
Join Date: Oct 2014
Posts: 82
Thanks: 12
Thanked 3 Times in 3 Posts
Activity: 0%
Longevity: 39%
iTrader: (0)
Default Anyone drop and start new accounts as soon as the 200/20k limit hits?

Last year I only worked on one account under my own name and grossed 270k according to paypal. Obviously made no where near that in clean profit, and when I had to pay taxes, it basically sucked.

So, I learned about stealth accounts and realized I could just sell up to the 200/20k limit in paypal until they ask for a ss#

So, great...I can sell things and paypal won't send the IRS any 1099 at the end of the year because I didn't provide any info.

But not so great, because when I withdraw to any bank account...it's tied to my name and social.

Now I'm wondering if the IRS sees that I grossed 270k last year, and this year much less, will they do anything about it?

How many mismatched name deposits into my bank accounts can I do? lol

Is anyone else doing this, or is everyone putting down their social or tax id?
Reply With Quote
The complete step-by-step guide to get back to selling today!

  #2  
Old 06-24-2015
jeffweico's Avatar
Executive [VIP]
 
Join Date: Mar 2010
Posts: 7,219
Thanks: 895
Thanked 4,061 Times in 2,168 Posts
Activity: 0%
Longevity: 75%
iTrader: (12)
Default Re: Anyone drop and start new accounts as soon as the 200/20k limit hits?

While ANY huge changes on your tax return can trigger an audit, it is NOT a guarantee. You should really take this question to a tax professional.

You didn't pay taxes on the GROSS did you? You only have to pay taxes on your PROFITS, not on your gross sales.

You actually will not be able to sell $20,000 on the account, because once PayPal's algorithm determines that you MAY go over, they are going to ask you for the tax-id. This will happen before you are even CLOSE to hitting the threshold.

As far as trying to hide any income from the IRS, don't do it! If you get caught, you are in for a WORLD OF PAIN! Use the services of a tax professional - they can get you all kinds of deductions that you may not realize you are eligible for. I spend between $400 and $600 per year for my tax guy, but he always saves me several times that amount.
Reply With Quote
  #3  
Old 06-24-2015
Senior Member
 
Join Date: Apr 2014
Posts: 148
Thanks: 9
Thanked 14 Times in 13 Posts
Activity: 0%
Longevity: 43%
iTrader: (0)
Default Re: Anyone drop and start new accounts as soon as the 200/20k limit hits?

You'll be good if you're really stealth. I do the same thing. Been doing it for years without an issue.
Reply With Quote
  #4  
Old 06-25-2015
Senior Member
 
Join Date: Dec 2014
Posts: 908
Thanks: 7
Thanked 175 Times in 119 Posts
Activity: 0%
Longevity: 38%
iTrader: (1)
Default Re: Anyone drop and start new accounts as soon as the 200/20k limit hits?

Sell as much as you can....but it wont be 200 AND 20k. It will be either or.
Reply With Quote
  #5  
Old 06-25-2015
ebayerOG's Avatar
Senior Member
 
Join Date: Jul 2010
Posts: 83
Thanks: 56
Thanked 67 Times in 56 Posts
Activity: 0%
Longevity: 73%
iTrader: (6)
Send a message via Skype™ to ebayerOG
Default Re: Anyone drop and start new accounts as soon as the 200/20k limit hits?

someone told me anytime your SSN sees an excess of 8k a month, the IRS gets notified.

not sure if this means specially one account number or if its a collective total of all accounts
Reply With Quote
  #6  
Old 06-25-2015
Recherché's Avatar
Junior Member
 
Join Date: Jul 2009
Posts: 312
Thanks: 38
Thanked 62 Times in 46 Posts
Activity: 0%
Longevity: 80%
iTrader: (0)
Default Re: Anyone drop and start new accounts as soon as the 200/20k limit hits?

Related question. I know on amazon once you cross that threshold and don't provide tax info, they suspend your account for that year. However, the next year you can sell on it again until it hits the threshold again.

How about Paypal? Once they suspend your account for not providing tax info, is it a permanent suspension until you provide info or can you use it again the next year?
Reply With Quote
  #7  
Old 06-26-2015
Junior Member
Threadstarter  
 
Join Date: Oct 2014
Posts: 82
Thanks: 12
Thanked 3 Times in 3 Posts
Activity: 0%
Longevity: 39%
iTrader: (0)
Default Re: Anyone drop and start new accounts as soon as the 200/20k limit hits?

Quote:
Originally Posted by zexaah View Post
You'll be good if you're really stealth. I do the same thing. Been doing it for years without an issue.

I sent you a couple PM's...hopefully you can share some info. I don't mind if it means shelling out a little something
Reply With Quote
  #8  
Old 06-26-2015
Junior Member
Threadstarter  
 
Join Date: Oct 2014
Posts: 82
Thanks: 12
Thanked 3 Times in 3 Posts
Activity: 0%
Longevity: 39%
iTrader: (0)
Default Re: Anyone drop and start new accounts as soon as the 200/20k limit hits?

Quote:
Originally Posted by Recherché View Post
Related question. I know on amazon once you cross that threshold and don't provide tax info, they suspend your account for that year. However, the next year you can sell on it again until it hits the threshold again.

How about Paypal? Once they suspend your account for not providing tax info, is it a permanent suspension until you provide info or can you use it again the next year?
I'm not sure about using it the next year, I haven't tried that yet. Regardless of being able to use it, what worries me is the stain of money on my name and ssn.

It wouldn't matter if 8k is the limit for a red flag. If for any reason the IRS decides to look in and see a bunch of extra bank accounts that had "paypal transfers" and I haven't reported it....could be a problem.
Reply With Quote
  #9  
Old 06-26-2015
Senior Member
 
Join Date: Nov 2013
Posts: 382
Thanks: 9
Thanked 72 Times in 55 Posts
Activity: 0%
Longevity: 46%
iTrader: (0)
Default Re: Anyone drop and start new accounts as soon as the 200/20k limit hits?

Quote:
Originally Posted by ebayerOG View Post
someone told me anytime your SSN sees an excess of 8k a month, the IRS gets notified.

not sure if this means specially one account number or if its a collective total of all accounts
Did they also tell you they have a space station on mars
Reply With Quote
  #10  
Old 06-26-2015
Junior Member
Threadstarter  
 
Join Date: Oct 2014
Posts: 82
Thanks: 12
Thanked 3 Times in 3 Posts
Activity: 0%
Longevity: 39%
iTrader: (0)
Default Re: Anyone drop and start new accounts as soon as the 200/20k limit hits?

so far, no one has any answer?

my favorite is how some people *cough* zexaah *cough* come on here and just blurt crap out without giving details. pointless? i think so...
Reply With Quote
  #11  
Old 06-27-2015
Junior Member
 
Join Date: Jan 2015
Posts: 103
Thanks: 17
Thanked 15 Times in 13 Posts
Activity: 0%
Longevity: 37%
iTrader: (0)
Default Re: Anyone drop and start new accounts as soon as the 200/20k limit hits?

i'm also wondering this same thing.
Reply With Quote
  #12  
Old 06-27-2015
Senior Member
 
Join Date: Aug 2013
Posts: 919
Thanks: 189
Thanked 155 Times in 113 Posts
Activity: 26%
Longevity: 48%
iTrader: (5)
Default Re: Anyone drop and start new accounts as soon as the 200/20k limit hits?

So you already filed for last year when you had 200k+ going through your bank accounts? How drastically is your net income changing from last year to this year?

I don't have any personal experience filing very high one year and very low another year with the same amount of money going through my bank accounts, but what my accountant told me is that it is easier to be "flexible" with your gross income than it is with your expenses. The first thing the IRS will scrutinize are your expenses. It is very important to have your expenses in order.

you're running a business. Whether it's an LLC, sole proprietor, whatever. In business, you can have hundreds of thousands going through your bank accounts and still be broke. However, when you are talking about this much money, you better have proof of your expenses in order in order to show that you are broke.

It's really important though that you talk to a tax professional. Make sure you find someone with experience in your situation, someone that knows the rules and the boundaries well enough when filing as a schedule C or however you will be filing.

As long as you have the dollar amount that has gone through banks under your name and you have your expenses in order, go to a tax professional and you can work something out. They would have a better idea of how a drastic reduction in net income is perceived by the IRS.
Reply With Quote
  #13  
Old 06-27-2015
kpizzl's Avatar
Subscribed [VIP]
 
Join Date: Feb 2011
Posts: 86
Thanks: 0
Thanked 5 Times in 5 Posts
Activity: 0%
Longevity: 68%
iTrader: (0)
Default Re: Anyone drop and start new accounts as soon as the 200/20k limit hits?

i THINK stealth is great and everything when your in a bind but really should be turning one of these accounts into an llc and running it as a legit business for longevity and paying my dues and not having to deal with tax evasion if they decide to look into my other bank accts and see all these mismatched names with thousands going into this bank or that bank....Scary ish!

Maybe link a couple accounts into your wifes bank acct or make them open a couple that u have complete access to so its spread out..

Last edited by kpizzl; 06-27-2015 at 05:13 PM.
Reply With Quote
  #14  
Old 06-27-2015
jeffweico's Avatar
Executive [VIP]
 
Join Date: Mar 2010
Posts: 7,219
Thanks: 895
Thanked 4,061 Times in 2,168 Posts
Activity: 0%
Longevity: 75%
iTrader: (12)
Default Re: Anyone drop and start new accounts as soon as the 200/20k limit hits?

Tax evasion is never a good idea. Yes, you will save some money on your taxes, but if the IRS ever audits you and you cannot explain why there was $200,000 deposited into all of your bank accounts but you only reported a gross of $150,000, then you are going to have a SERIOUS PROBLEM!

I was audited by the IRS. It was a scary experience, even though I knew that I did nothing wrong. When I received the notice, I went over everything 3 times and freaked out over every little detail. But my numbers were correct.

When the agent came to audit me, I gave him access to my accounting software (it was older software) and that was fine with him. But then they will pick out some transactions and ask you to pull receipts and proof for that transaction. You don't need a receipt for every single item, but you DO nee some sort of proof - like you say you sold 1,000 of item "X" then they want receipts showing that you purchased 1,000 of item "X". If you don't have a receipt, a credit card statement can suffice.

The agent was very nice, he told me not to worry, that there were not looking to throw anyone in jail for a small mistake or anything like that. But he also said that when they find someone cheating the system, THEN they go after them with GLEE! It turned out OK for me.

Generally, as long as you can explain (and justify) everything, you will be fine.
Reply With Quote
  #15  
Old 06-27-2015
Senior Member
 
Join Date: Aug 2013
Posts: 919
Thanks: 189
Thanked 155 Times in 113 Posts
Activity: 26%
Longevity: 48%
iTrader: (5)
Default Re: Anyone drop and start new accounts as soon as the 200/20k limit hits?

jeff, do you know what triggered the audit?
Reply With Quote
  #16  
Old 07-02-2015
Senior Member
 
Join Date: Nov 2013
Posts: 382
Thanks: 9
Thanked 72 Times in 55 Posts
Activity: 0%
Longevity: 46%
iTrader: (0)
Default Re: Anyone drop and start new accounts as soon as the 200/20k limit hits?

Quote:
Originally Posted by jeffweico View Post
Tax evasion is never a good idea. Yes, you will save some money on your taxes, but if the IRS ever audits you and you cannot explain why there was $200,000 deposited into all of your bank accounts but you only reported a gross of $150,000, then you are going to have a SERIOUS PROBLEM!

I was audited by the IRS. It was a scary experience, even though I knew that I did nothing wrong. When I received the notice, I went over everything 3 times and freaked out over every little detail. But my numbers were correct.

When the agent came to audit me, I gave him access to my accounting software (it was older software) and that was fine with him. But then they will pick out some transactions and ask you to pull receipts and proof for that transaction. You don't need a receipt for every single item, but you DO nee some sort of proof - like you say you sold 1,000 of item "X" then they want receipts showing that you purchased 1,000 of item "X". If you don't have a receipt, a credit card statement can suffice.

The agent was very nice, he told me not to worry, that there were not looking to throw anyone in jail for a small mistake or anything like that. But he also said that when they find someone cheating the system, THEN they go after them with GLEE! It turned out OK for me.

Generally, as long as you can explain (and justify) everything, you will be fine.
lol every time i hear audit i think im in a car dealership.
Reply With Quote
Reply



Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
High Limit UK Ebay Accounts (1000/£15000)& All Limit Removed Paypal Accounts For Sale Ebayorbust eBay Accounts for Sale 1836 2 Weeks Ago 12:10 PM
2 Ebay accounts per paypal to dilute hits? glacier922 Subscriber Discussions 8 11-05-2013 12:45 PM
Question about VERO hits and pre-11/2007 accounts ploughman eBay Suspensions 2 09-04-2009 08:27 AM
waiting periods with new accounts, and alert hits n4spd Subscriber Discussions 4 07-16-2009 03:16 AM


Aspkin Group

All times are GMT -5. The time now is 02:01 AM.


Stop the guessing games and learn how you can quickly and easily get back on eBay today!
Read the best selling step-by-step eBay Suspension guide eBay Stealth!
Amazon Suspension? Read Amazon Ghost to get back on Amazon!
vBulletin® Copyright ©2000 - 2019, Jelsoft Enterprises Ltd.
Ad Management by RedTyger
no new posts