Paypal to turn in any earnings over $20,000 to IRS

[mofetee]

Just logged into paypal to see than anything over $20,000 a year will be turned into IRS for tax purposes starting January 1, 2011.

Uncle Sam is wanting his share of profits that Ebay & Paypal bring to sellers AND...........They can't do it unless EVERY paypal account user has a SSN on file. I would say be prepared if you don't already have a SSN on file.

[jeffweico]

Did the PayPal page SAY that everyone will be required to have an SSN?

We have known about this for a long time now, but we don't know how exactly it will be implemented.

It really does not matter, there are possible workarounds for this that will satisfy the IRS requirements and be legal, but will still fool PayPal.

[Melissa1971]

yes Jeff like maybe a passport will suffice...

[123]

Heres my take on this whole thing, basically they won't require a ssn from everyone because they will lose a lot of customers and its unnecessary since its only for people with over 20,000 in payments and over 200 transactions, and less then 20% of paypal users fits this criteria thus not smart idea for them to require it for all. So what they will do is only require it once your paypal reaches that point or nears it. Thus I fortell a lot of people making multiple stealth paypals in the future. As for me won't affect me much as I already report my taxes.

[sdot10]

I feel like this announcement wont hurt anyone. If you are making 20k on ebay/paypal there is no way they dont have your SS# already. Theres also no way they will require a SS# for all people. In fact this may actually help us. Paypal MAY get less crazy about info to keep people around. Alot of people may run from the service if they think they have to give their SS# to sell an old laptop worth $200. I can also see bigger sellers running from the service esp if they dont report their taxes correctly.

[First Edition]

It's not just paypal, it is all credit card processors, and they only report GROSS receipts, not profits.....

gah, another one of these threads?!!?!?

Seriously people...

[zeevik03]

Yes another one question please.

So if I have a ste@@@lth account that is on a fictitious name and I sell more then $20.000 what would be the best thing to do when Paypal sends the 1099?

[First Edition]

You'll be luck to sell more than 20,000 without getting limited. And who knows? It's up to the IRS really. They're slow with a lot of things..... so I imagine it will take some time. I'm also sure that when they ask for the social, they will verify it in some way.

[zeevik03]

Is that $20.000 a month or for a year?

[123]

Originally Posted by zeevik03

Is that $20.000 a month or for a year?

Its 20,000 a year

[doughboykilla]

Originally Posted by zeevik03

Is that $20.000 a month or for a year?

if u make 20k a month u should be paying taxs or u could end up like wesley snipes!

[123]

Originally Posted by doughboykilla

if u make 20k a month u should be paying taxs or u could end up like wesley snipes!

lol yep 3 years... ouch thats gotta hurt

[GreenBean]

Search forum for this never mentioned before topic

Earn money.
Pay taxes
Find an accountant.
Thread closed