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Paypal has started asking for SSN in the US....
 

I logged into my main Paypal account this evening to print out some packing slips.
I had a new screen stop me on the way in.

Paypal now wants my SSN number so they can send me a 1099 next year.

This is a quote from the web page:
"Please take care of this promptly so you can enjoy uninterrupted service for your account."

So it seems as if you do not provide the SSN then your account will start to have some "interrupted service"

This account has had just over $13,000.00 ran through it in 2011.
Is this the new magic number we have been looking for?



Update:
I just went in to give them my SSN.
Here is another quote from the confirmation screen that is surprising:

"After we confirm your tax ID, we'll also remove your PayPal receiving limit ($X,XXX.56 USD and 0 transactions remaining)."

Please keep in mind that this account is 3 years old and has never had any type of limit set on it.

And the fun has started.....

HWGA, is that correct? You ran $13k through there since January 1st?

Yep Jeff that is correct.
That is also NOT counting Amazon.... LOL

That must be the magic number since I'm still logging in and out of dozens of my own personal acct's and haven't seen that yet.

This PP account is also my MAIN account.
It has all the correct information in it.
So I was able to confirm the SSN with no problems.

After I gave them my correct SSN & DOB it took a moment or 2 and then the "Your Done" screen came up.

It says that they run the info through a database provided to them by the IRS.

I asked my question as I have been wondering if a specific DOLLAR AMOUNT will trigger the request, or if it would be a formula based on velocity.

For example, if your account does $2,000 in January, then 12 x $2,000 = $24,000, so they ask for the information, even though you only took in $2,000 so far.

^^^^^^^^
I truly have no solid idea.

I know that I passed the 200 items sold about 1.5 - 2 weeks ago.
But I passed the $13K mark today.

Thanks for the info so it seems they wait on a specific dollar amount so I guess its safe to say when your reaching around the 10 grand mark you'll get the notice soon. But the fact that you weren't limited and only got a notice is a good sign it probably means they won't stop you from selling or anything until you reach the irs limit. So seems all they will do is give you a warning around the 10-13k so to make sure by the time you reach 20k you had plenty of time to comply.

He not hit the 20K but he passed the 200 transaction.

Yeah I know I'm saying once you reach the 10k-15k mark you'll get the notice and when you hit the 20 mark you'll get the limitation.

I have over 200 trans and a little over 10,500, I have not seen any notices, but will keep a eye open as to when/if I see it and what dollar amount I am at when/if it does

You ALSO have to be beyond the 200 transactions mark.
Remember you have to surpass BOTH things - 200 + 20K to get the info sent to the IRS.

But is seems as they will ask BEFORE you reach the 200 + 20K.

Do we even know if they will limit you at 20k/200? I guess we'll find out soon enough!

Luckily, i am not a big wheeler like you guys and my accounts dont make it a year. So this isn't something i need to worry about, except well on my main paypal. Which doesn't do 20k anyway since it doesn't have a ebay lol

I have $1200.00 in sales this year and over 200 transactions. I got the email today.
So I met one of the requirements "200 transactions".
PP says that I have $18800.00 left before they place a hold on my acc.
So I think they will send(sooner or later) this request if your reached 200 transactions(as I am) and/or get closer to $20 000.00

...It is starting...

Pretty sure that Paypal will not allow the account to go over $20,000 if you have already surpassed the 200 transaction mark if you haven't provided the information. They will put a receiviing limit on the account so you can't bring in any more payments and not actually limit the account completely.

That is correct. They cannot, according to IRS rules. Well, they CAN, but then they have to withhold 20% of your funds and turn them over to the IRS, which is a responsibility I doubt that PayPal would want.

We all need to keep in mind that PayPal is a BUSINESS, which means they will seek to implement this in a manner that is LEAST disruptive to their business.

My hope is that means they will give everyone as much leeway as possible while still being in compliance with the law.

Ffffffffff

Got the notice today as well. Here is the email quote

IRS requirement: We need your tax ID number


"Dear XXXXXXXX,
As you may have heard, the Internal Revenue Service requires that we confirm your federal tax ID number (TIN). Your TIN is either your Employer ID Number or your Social Security number.
We need your help to comply with these rules and to avoid interruption of your account.

1. Log in to your PayPal account.
2. A message will appear asking you to update your information.
3. Click Confirm Now.

You may also need to upgrade to a Business account. If you own multiple accounts, please repeat these steps for each account. When you're done, we'll remove your receiving limit, so you can receive unlimited payments.
Thanks for helping us comply with these IRS rules. For more information, please see our FAQs on the IRS reporting requirements.

Sincerely,
PayPal"


Now I have to get my father-in-law to file taxes on my behalf since its under his info.

BooMer

No. The only response the IRS will give is MATCH or NO MATCH. If it is a match, then the requirement is met. If it is NO MATCH, then PayPal must correct the issue to get the "match" response, OR withhold 20% of your payments and turn them over to the IRS.

So moral of the story is to not go over 20k and 200 transactions,


19,999 and 199 transactions = no report. Pretty simple no? On your stealths just keep it below, i don't make the money some of the people here make.So reaching 20k/200 seems very off for me. I guess it will happen, but if you have a lot of accounts, just cut it off before the cap. And you win, yes?

so how do you pay the irs on a stealth account?

Papal is asking for the Social Security Number of whoever is Managing or Opened the Paypal Account who the Approved Person is (Approved by the Company) on that account,,,

Paypal cannot Realistically Believe that ALL Business accounts are opened and Managed by the Same individual that is a Principle on the Corporation or th LLC,,,

So I am Quite Sure that if we are talking about a Business Paypal Account the Name of the Owner of the Corporation or LLC and the account holders (Manager) Do Not need to match