IRS Demanding Paypal to report seller over $20.000 in Sales Any ideas how to avoid it

[zeevik03]

So I read lately that the IRS is making online sellers to submit an income form with earnings if you are selling more them $20.000 or 200 items in online sales.
Paypal would demand you to submit this form and you have to supply your SSN or EIN.

Now question comes here what will happen to the ste@@@lth accounts then we all have here. I mean can't submit SSN or EIN on those accounts.

Any ideas how to cope with this new problem?

Here is the link to the article IRS to Track Online Sellers' Payment Transactions Beginning Next Year

[jeffweico]

It's not just PayPal. It applies to ALL online payment processors.

Why is an EIN not an option for you? You can have one EIN for each business you have. It is within the rules.

If you are talking about evading taxes, I highly recommend against it. If you ever get caught doing this, you are in for a world of pain. And people go to jail for that. It just isn't worth it.

[123]

This is old news and you have it incorrect its $20,000 and 200 payments. Both must be met so most likely you won't to worry about that, especially if you spread between a couple of paypal accounts. But you really should be reporting your taxes anyways, you don't want the irs on your butt.

[jeffweico]

Just to add...

Just because PayPal reports $20k in payments to you does not mean that you owe taxes on $20,000. You only have to pay taxes on your PROFITS.

[123]

Originally Posted by jeffweico

Just to add...

Just because PayPal reports $20k in payments to you does not mean that you owe taxes on $20,000. You only have to pay taxes on your PROFITS.

Yes and ontop of that you should also be able to furnish upon request receipts of costs.

[pod]

Originally Posted by jeffweico

Just to add...

You only have to pay taxes on your PROFITS.

Huge difference there too. All your expenses come off the total when you file. Lots of deductions can be made.

But as far as avoiding it, don't believe this is the place to discus that. Forum isn't really about cheating anyone. Including governments. Not saying you should or shouldn't. Not my place.

We play a lot in the gray area here. But its so we can get back into the market place. Nothing shady.

[zeevik03]

No No No I think you guys misunderstood. Not trying to avoid paying taxes. Not the problem here.

The St@@lth accounts are. Mine are not all DBA they are just names that I made up. So I cannot really put EIN on it it is not a legal DBA.

Also is there other option then just to spread over 10 accounts?

[lagoonclub]

I have absolutely no problem paying taxes, please let me pay taxes.

I just want eBay and PP to leave me alone so I can make this $ so I can pay my taxes.

[jeffweico]

Originally Posted by lagoonclub

I have absolutely no problem paying taxes, please let me pay taxes.

I just want eBay and PP to leave me alone so I can make this $ so I can pay my taxes.

I think that about sums it up for all of us!

[GreenBean]

You earn money. You pay taxes. Find an an accountant for that.