How close to the $20,000 PayPl mark before they cut you off?

[JJGold]

All of my accounts have now received a request for SS# from PP as they crossed the $11K in yearly sales. How close to the magic 200 items/$20k in transactions will PP let you get before they shut it down? I'd like to push them as far as I can to give some newer stealth accounts time to get their limits raised.

Any help would be appreciated.

[LoopHole]

It varies by like 1000000 different factors... and depends a lot of the person who is making this decision. And uhhh it sounds like your accounts are going to be shut down anyway...... unless you provide SSN for all of them..... isn't it how this works???? sum1 correct me if im wrong.

[JJGold]

Originally Posted by LoopHole

It varies by like 1000000 different factors... and depends a lot of the person who is making this decision. And uhhh it sounds like your accounts are going to be shut down anyway...... unless you provide SSN for all of them..... isn't it how this works???? sum1 correct me if im wrong.

I'm not sure you understood my question. I'm trying to determine how close to the $20,000 mark that the IRS now requires PayPal to supply SS# information can I get before PP shut's me down. I'd like to stop selling in those accounts before getting shut down. They are stealth accounts and therefore no SS# can be provided.

[Here We Go Again]

Last year PP email me when I was over 200 sales & at about 14K in gross sales volume.

[Sandy D]

I got hit around the 12k mark.

I am thinking it is based on many things but the "potential" of your account hitting 20k is what they are looking at.

If you sold 12k and it is November then it is unlikely you are going to hit 20k.

If it is March and you hit 12k get ready.

[GreenBean]

Originally Posted by JJGold

I'm not sure you understood my question. I'm trying to determine how close to the $20,000 mark that the IRS now requires PayPal to supply SS# information can I get before PP shut's me down. I'd like to stop selling in those accounts before getting shut down. They are stealth accounts and therefore no SS# can be provided.

Trust me, loophole DID understand the question.

I have yet to find a 'defined' plan by paypal for asking for the info.

If you find it, consider sharing.

Accounts that sold between $15000 & $19000 got notice.

One account sold over $23000 with no notice.

Another account sold over 200 items ( but nowhere near $20000 value) & got notice.

It's a variable.

[KingRay]

GB is right. There is no plan. Call them and ask. straight out. Call from a friends phone and just hit them with that question and see what response you get.

cant hurt..

Also, I think if you start dumping account or I guess leaving them at specific dollar amounts like say 10k, you might as well just never use it again next year either. I would imagine they will ask the 1st time you use it the following year.

THey arent stupid although they do seem it most of the time.

[Sandy D]

Ray I had several accounts that were close to the 10k range late last year and I shut them down other then signing in and bidding etc.

I am back using them again with no problems at all and they have not asked for anything yet. That is why I created tons of accounts towards the end of last year so I could do this.

When they hit the 10k range or close to 200 in sales I will do the same thing, look, add to watch list, bid and let it sit. You have to keep the account active.

If you have a lot of accounts you can do this with no problem.

I would much rather have accounts sitting to use then not use them again at all.

Can I ask, why would you not want to use them again in the next calendar year?

[JJGold]

Thanks for the replies. Conclusion, I need more accounts!

[KingRay]

Originally Posted by Sandy D

Ray I had several accounts that were close to the 10k range late last year and I shut them down other then signing in and bidding etc.

I am back using them again with no problems at all and they have not asked for anything yet. That is why I created tons of accounts towards the end of last year so I could do this.

When they hit the 10k range or close to 200 in sales I will do the same thing, look, add to watch list, bid and let it sit. You have to keep the account active.

If you have a lot of accounts you can do this with no problem.

I would much rather have accounts sitting to use then not use them again at all.

Can I ask, why would you not want to use them again in the next calendar year?

I was mainly talking about the account that people just abandon when they dont want to give the SSN/EIN on it when they ask.

as for the question about not using an account until the next year? That is just what others say they want to do.

[elane]

safer limits are less than 200 items and less than 10K total in a year

[jeffweico]

PayPal has stated they are basing their requests on an algorithm. They are looking at your current sales and calculating the likelihood of you going over $20,000 during the year. If you meet the criteria in the algorithm, they will ask for your SSN/TIN.

Of course, they are NOT giving any information on the algorithm.

But they almost HAVE TO do it this way to be in compliance with the law. They know that when they ask, not everyone will give the information right away, and it also takes time for them to verify that the information is correct. If it is not correct, they need time to resolve that also. So, they cannot wait until you are at $19,999 and then ask for it.

I would have to believe that it pays to keep your sales STEADY. For example, if you want to do $12,000 per year on the account, do $230 per week and keep it around that number. If, one week, you spike with $3,000 in sales, that will probably trigger the algorithm.

[Sneakee]

I know you've gotten a lot of responses but I thought I would share my experience.

I got a notice as soon as I hit $20,000. Literally. I went over by $200 and got a notice that they sent the info to IRS.

According to their rules, it has to be $20,000 AND 200 items sold. That's what they say on their pages. I don't know if they stick to it though and send your info sooner for a variety of reasons.

[Sandy D]

Originally Posted by Sneakee

I know you've gotten a lot of responses but I thought I would share my experience.

I got a notice as soon as I hit $20,000. Literally. I went over by $200 and got a notice that they sent the info to IRS.

According to their rules, it has to be $20,000 AND 200 items sold. That's what they say on their pages. I don't know if they stick to it though and send your info sooner for a variety of reasons.

I was told by my book keeper that the IRS is holding PPs feet to the fire because anyone reaching those numbers must be reported to them and must be sent the W2.

PP is protecting their own butts and sending them out based on the potential of you hitting those numbers.

[jamblix]

Originally Posted by Sandy D

I was told by my book keeper that the IRS is holding PPs feet to the fire because anyone reaching those numbers must be reported to them and must be sent the W2.

PP is protecting their own butts and sending them out based on the potential of you hitting those numbers.

I'm not too experienced in this but, wouldn't that be illegal? To send info like that to the IRS prematurely and without you knowing about it. I could be way off here...(edit: after reading this...I how would they send the info to the IRS without any info to send haha too much greens today..)

In either case they shouldn't be requiring you to give info until you reach that $20k/200 item mark absolutely. So if they were asking me for my SSN at $11k I would tell them what the terms state and that until I reach $20k and 200 items they won't be getting that info. The account would get shut down anyways. Might as well try to see if will stay open without sending that info, or just ignoring the email altogether would probably be best. I haven't received it yet, hope I don't ..

[Sneakee]

That's very scary Sandy. I guess it's time for everyone to become more organized and report report.

[yotano211]

You should be reporting any profits you have anyways. People always think they can get away with not paying taxes. The IRS is much smarter then most people think. Esp. know with all these debts the US has, time to report all and pay more.

TL: DR=Time to pay up sucka

[GreenBean]

Dont start urban myths on what paypal should or should not do.

Getting boring to have to repeat this.

Seek professional tax advice.