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Talked to Paypal today - some info i got on New Verification
 

Hi , on another thread in here we had a debate about whether paypal will be giving a 1099 for the 2011 tax year as already know they will be reporting ... I was wrong as i thought it would be a 1099 ... I have had the same Paypal account since 1999 , so i called yesterday and asked .. what paypal is apparently going to do is send some king of money collected summary/statement to the irs ..i never gave them my ss number - so i asked about this and was told that it will be mandatory for me to give the ss # when the time comes - if i wish to continue to have the account .. i was also told for new account (i asked about my wife ) that they will basically be pulling the credit for id verification due to the legislation that passed due to terroist sending or laundering money through paypal and of course people under reporting their internet sales ..Once again this came from CS rep so maybe they dont know what they are talking about but just thought i would pass it on ...............................also would be great if someone else could call and see what they tell them - just wondering

terroist sending money
lol they will come up with any excuse i see

not sure ,, i dont want to call again.. maybe someone else can call too .. i just told them my accountant wanted to know how the reporting stystem to the irs would be used ..the guy at paypal did sound too happy with it either its def not something paypal wants.

How will this effect the UK , we don't have to give our SSN over?

Correct, but there is a UK equivalent that might* be required. If there are potential changes in one country, we need to consider changes elsewhere:fight:




*(B4 ya'll panic, note I said might).

I called paypal also about changing my address -called 2 diff times and got 2 diff answers ... thats why if someone else calls maybe they can ask ....

There are alternatives, no worries. :)

Alternatives to what? Once 2011 hits and they make us use SS numbers to start new accounts were ****ed

I think he meant paypal alternatives.

I wonder if they will allow EIN number instead on business PaPals.. Plus what if your PayPal is in LLC? Must be a way around it....

Yea there is a way but not online. I think you have to fax them documents pertaining to your business and then PayPal has to put in the EIN number manually. But who knows they might do that and still want the ssn for whoever is running the show.

There are alternatives AND ways around it. Don't make it a big deal because it's not. We all knew this was coming for a long time.

No worries.

Yea, time flies fast, doesn't it? Will be here before we know it...

I thought the ssn requirement was going to be for anyone making more then 20k a year?

The reporting is for those who take in more 20 thousand in a year. I think paypal will require a social on all new accounts.

yes, I was told the same thing. Social will be required on all new accounts after a short time of taking in payments as a seller ONLY using it with eBay or setting it up as a business account etc...

However you can request money with no problems as long as its for goods or a simple money request.

Paypal sucks anyway. We shouldnt even be talking about them anymore guys everyone should get an approved merchant account and take controll of your money.

Paypal only takes a second to set up and I never have any problems getting my money out since I always keep it under a thousand and spread my sales over many accounts.

Not everyone has the ability to do so, I have done it also but why bother if you can link 100 accounts to one merchant through Autiva and get your money in 24hrs, also buyers feel they have more power over you with Paypal. But however Paypal is the buyers number 1 choice of payment.

I guess I didn't know you link 100 accounts to 1 merchant, the last one I had was moneybookers and they would only let you link 1 account and google checkout wouldn't let me sell any media.

Moneybookers is not a merchant provider

Moneybookers is merchant processor, like paypal. They are not a direct payment gateway.

Dammit, well I guess I better start selling like crazy right now because this SS requirement is going to make everything were doing useless.

Merchant is still alternative if you are selling in certain categories, but there are categories I sell in I am required by Ebay to use only PayPal. This is a problem.

You can still get around that by taking out key words from your listing.

From what I've read, any payment processor or merchant account you have, they are required to report your earnings to the IRS if you do over 20k in revenue. Correct me?

I mean yea but they are just going to require all to have SS numbers, that would be dumb for them not to. The end of stealthing comes in 2011!

I'm sure there will be ways around it.

The end of stealthing will come with a huge rise in identity theft. My god how it would be so easy to steal someones identity with paypal after this. Not going to do that, so I guess I will just fold and sell on craigslist or something. Eff you Paypal! I just wish I had gotten into this game alot sooner!

They'll probably be a rise in bogus corporations with fully verifed business paypal accounts. I saw one the other day, it was a UK corporation w/uk ebay account, biz paypal, uk bank acc. ability to sell on us ebay,800 # all for $99.

an EIN number is not a replacement for a social, they still may require this.

True, but wouldn't you have the right to refuse to give up your social on legal grounds. In order to report taxes all they need is EIN, they don't really need social for that, do they? I mean, IRS will know that certain EIN is connected to certain social....Why would PayPal nee this info? They are not IRS....

I mean to be fair I am shocked they haven't instituted a SS number policy along time ago. I am surprised it took this damn long for them to do it. My only connection is that they make so much money a year off of stealing blocked accounts and limiting them. Their board of directors has sat back and said ok we make $23 million a year off of limited accounts that cannot be reinstated, and we lose $12 million a year to scammers. So therefor they do nothing. Now with this new legal judgment, they have no choice, and will have to require SS numbers. I also firmly believe it has something to do with the buyer protection program as well.

i wonder if the ssn is applied to making new accounts in 2011 and all other accounts made before will be normal like now how they they limit you at a certain point,if thats the case,im gonna make a **** load of accounts

paypal is only going to hurt themselves with that new SS requirement. I will stop using paypal once this occurs.

They already do it at a certain point ;)

It's concessions ebay had to give in to because the government wants to tax the internet. So they ask for your SS# when you make pocket change in turn Uncle sam gets paid. The thing is, do all these payment processors give up what you sold on your web site?

Wow... First the new eBay verifications, now this... I think it may be time to give eBid a serious look. When the ssn requirement drops, 40% of eBay are gonna be looking for somewhere to sell.

Looking at other websites will be pointless. When the FEDERAL LEGISLATION goes into affect all companies will be required to report when the noted guidelines are met. Time to move to China. :)

I knew this, but its always unsettling when i think about it.
Big brother wants to control everything.
And know everything about you.

If i am to remain on ebay after that change occurs, well i know it
will cost me even more money to stay stealth.

Then again, im using ebay to fund my PPC campaigns.
Its just that....... ebay money is fast money. I better make as much
of it as i can now.

cheers.

I am currently using a payment processor based in Canada, for my website. Since they are in Canada, they don't need to follow the IRS's rules correct? If that's the case, then that is one way around it.