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  #1  
Old 02-27-2016
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Default 20K/ 200 Transactions Questions

Hey, I have a quick question about this. I have got the notification about me getting to the 200 transaction realm. I'm not that close to the 20K limit, I still have a ways to go. They have now limited my account but it's still functional. The only thing I can't do is Close the Account. I do not intend on giving them a SSN since mine is on their Radar already. I don't intend on creating a EIN and all that either because I don't want to claim anything since it isn't my day job. Regardless,

My questions.

1: How close can I get without them limiting the account completely to where it's rendered unusable.

2: If I remove the bank and use it on another account a little later down the line will that screw both accounts?

I have a very high transaction rate, but I'm not using Ebay and I'm collecting payments via a Donation Site for PayPal itself. They look like Donations but it charges as Goods and Services. I haven't had any issue with using it, even with a brand new account I don't receive a 21 day hold on my transactions.

I have no problem just using another account, I have a few but I'm shy on just making more and more Savings Accounts with my bank as I just closed 3 and still have 3. I run through 200 transactions in a little over a month on average and get hit with the IRS notification and all that stuff. I have several accounts that could use the bank and get to work on. Let me know what you guys think any ideas would be greatly appreciated!
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Old 02-27-2016
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Default Re: 20K/ 200 Transactions Questions

1) If you've already received the tax limitation the account won't be limited any further. You won't be able to receive any more payments on that account until next year, and that's all there is to it.

2) Paypal would not allow you to attach the same bank account to a 2nd Paypal account, even if you had removed it from the 1st Paypal account. Money laundering/tax evasion/etc regulations prevent this from being allowed.

3)You didn't ask about this specifically, but you should be aware if you keep opening and closing accounts at the same bank the bank is going to end up closing all of your accounts. I've had bank accounts closed in the past and it can be devastating for a business.. You should avoid having more than 3 or 4 accounts at a single financial institution to minimize your risk and avoid looking suspicious. A bank will close your account just as fast as Paypal will.
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Old 02-27-2016
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Default Re: 20K/ 200 Transactions Questions

Just to add on to what I said about banks.. There is nothing illegal about having accounts at multiple banks/credit unions. It is much more secure for your business to spread your Paypal withdrawals to multiple institutions.

Things can become much more difficult for you when your current bank DOES close all your accounts for suspicious activity, and reports the account closures to chexsystems. Because nearly every bank checks your chexsystems report before allowing you to open an account with them.

Diversify your banking now, my friend! I know those bankers can be intimidating but it's worth it!
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Old 02-27-2016
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Default Re: 20K/ 200 Transactions Questions

I just received a limitation stating that they want me to update my tax information at the moment. The account still has complete functionality other then I am not allowed to close it so I still have a ways too go. Good to know with the banking.

I appreciate it and I will look into other options to diversify my banking.
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Old 02-27-2016
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Default Re: 20K/ 200 Transactions Questions

Cool, cool. If you're still receiving payments then it doesn't sound like you're limited yet. They will email you twice requesting your tax reporting info as you're approaching the threshold, but once you hit 200 sales the account will be limited so you can't receive any more payments.
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Old 02-27-2016
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Default Re: 20K/ 200 Transactions Questions

It's not 200 Transactions and 20K grossed? Just 200 Transactions OR 20K grossed? That changes everything ha.
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Old 02-27-2016
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Default Re: 20K/ 200 Transactions Questions

Quote:
Originally Posted by NadlesKVs View Post
It's not 200 Transactions and 20K grossed? Just 200 Transactions OR 20K grossed? That changes everything ha.

The rules are different for what gets your account limited and what gets your receivables reported to the IRS.

If you reach 200 sales OR 20,000 in payments you are limited. If you reach 200 sales AND 20,000 in payments, Paypal submits a 1099 to the IRS on your behalf. You won't have to worry about the latter though if you haven't supplied a tax ID..
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Old 02-27-2016
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Default Re: 20K/ 200 Transactions Questions

Alright, so I've been hit with this a few days ago. I just realized I tipped that 200 Transaction realm, I still have a good bit to go on the grossed income amount. So everything should stay like this until I hit 20K?
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Default Re: 20K/ 200 Transactions Questions

It's either 200 items OR 20k sales. Whichever comes first
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Default Re: 20K/ 200 Transactions Questions

There seems to be a lot of confusion with this. I am over 200 transactions. I'm only at about 5K Grossed income for the year. I sent a picture of the PayPal Limitations above but I am not having any issue accepting more payments at this time, withdrawaling, etc. I got that limitation 4 days prior to this which is when I hit 200 transactions exactly. All it states is that I can not close the account. Everything else is fine.
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Default Re: 20K/ 200 Transactions Questions

I don't have any confusion. You will be limited further if you don't provide info and keep taking sales.
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  #12  
Old 02-28-2016
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Default Re: 20K/ 200 Transactions Questions

There's no way you're at 200 sales for this tax year, or you wouldn't be able to receive payments. Paypal sent out 1099's around 1/20/16, so they likely restarted the count for you then.

That's a strange limitation though.
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  #13  
Old 02-28-2016
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Default Re: 20K/ 200 Transactions Questions

Check this out.

Opened account and started receiving payments on January 22th 2016

211 transactions as of right now.

*Deleted Image*

Added GIF below.

So that's what I'm trying to figure out if it's just that soft limitation until 20K grossed because my transactions vary from $4.50 - $300+

Last edited by NadlesKVs; 02-28-2016 at 11:14 AM.
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  #14  
Old 02-28-2016
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Default Re: 20K/ 200 Transactions Questions

Hmmm.. it may have been a good idea to blur out all of your customer details.

Are you sure you've received 212 payments, and not 112? I can't say for sure about Paypal but I know that on eBay your sales records start counting at 100 instead of 1. Given the sales velocity you've shown I doubt that's the case, but it's one possible explanation.

Another possible explanation would be that some of your customers have been sending "friends and family" payments which I believe do not count towards the IRS threshold.

I think the 2nd scenario is most likely, but I can't say for sure. I can say for a fact that I've NEVER been able to receive more than 200 payments on a Paypal account without tax reporting info.. so your case really is strange.

How have you been receiving payments?
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Default Re: 20K/ 200 Transactions Questions

Quote:
Originally Posted by phaz0rz View Post
Hmmm.. it may have been a good idea to blur out all of your customer details.

Are you sure you've received 212 payments, and not 112? I can't say for sure about Paypal but I know that on eBay your sales records start counting at 100 instead of 1. Given the sales velocity you've shown I doubt that's the case, but it's one possible explanation.

Another possible explanation would be that some of your customers have been sending "friends and family" payments which I believe do not count towards the IRS threshold.

I think the 2nd scenario is most likely, but I can't say for sure. I can say for a fact that I've NEVER been able to receive more than 200 payments on a Paypal account without tax reporting info.. so your case really is strange.

How have you been receiving payments?
I'm using ImRaising INC to receive payments. It's a site for Donations for Video Streaming that you can link people to and they can pay. It counts on PayPal as Goods and Services and ImRaising takes a Fee of course. I don't accept as Friends and Family because it's never worked well for me. It's 211 Payments for sure ha. All Payments received are what is counted. I had 2 people send as Friends and Family because they were having issues on the site but when I downloaded my transaction history it said, "Money Received" instead of, "Payment Received." So I deleted them as they don't count obviously.

This is why I'm confused if you can tell, I don't think it's because I'm using ImRaising. On my PayPal it gives me the same options as a Goods and Services transaction and it counts as such. I talked to a few of my buddies that actually do Video Streaming and when they get over 20K they get a 1099-K and they have to claim it. It's like receiving tips as a waitress. That is besides the point.

It's definitely 211 transactions. Starting on the 22nd of January until Today.

Here is a GIF.

I'm sure you can see why I'm confused, previously I was using just friends and family and had issues so I started doing this so I'm not familiar with this issue at all. I rotate accounts because I get a lot of transactions.

Imgur: The most awesome images on the Internet
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  #16  
Old 02-28-2016
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Default Re: 20K/ 200 Transactions Questions

I'm baffled by this.. doesn't make any sense at all to me.

Given the typical behavior of an account without an SSN, I'd say it won't be long before you can't receive any more payments. I have no idea why you haven't already been hit with that limitation...
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Default Re: 20K/ 200 Transactions Questions

I don't know. I will take it slow to see how far it goes. If they lock it down because I don't send tax information do they limit it so you can not withdrawal?

Quote:
Originally Posted by phaz0rz View Post
I'm baffled by this.. doesn't make any sense at all to me.

Given the typical behavior of an account without an SSN, I'd say it won't be long before you can't receive any more payments. I have no idea why you haven't already been hit with that limitation...

Update: They just got me. I accepted 220 transactions and got hit with it. Fortunately, I was able to withdrawal it all and move on, hopefully.

You guys just scrap these accounts? There is no way around this issues? Other than the obvious adding Tax ID Information.

Last edited by NadlesKVs; 02-28-2016 at 05:16 PM.
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Old 04-01-2016
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Default Re: 20K/ 200 Transactions Questions

Hello friend ,there is any new update ? Are you still able to receive payments ? Or atlist buy or withdraw money from your account without submit the TAX ID ?
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Old 04-02-2016
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Default Re: 20K/ 200 Transactions Questions

Read the post right above you.
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