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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

What if you never withdraw money to a bank account? I sell alot on Ebay but I use all the funds to buy things I need. I may sell maybe $1000 a month on Ebay and I just buy Wal-Mart Gift cards and buy groceries with it. If you don't withdraw does that affect it?

Yes. Taxes are due on money earned.

I received the email "we need your tax id number" about 4 days ago. Every time I would login it would popup nagging me. The account has a SS number already on it, but its not mine. Strangely the notice dissapeared after a couple of days. Today I received another email. It is a survey email and it states " We understand that your PayPal account may have been temporarily limited due to questions or concerns by our Account Review team. Thank you very much for your cooperation during this process. We are pleased that your account has now been reinstated."

However I never upgraded to business or entered an EIN as their email requested. Very strange, seems the land of paypal maybe as confused as we are about it.

For the record, my email and notice to upgrade and "confirm" SS or EIN was given at 113 sales, with gross sales about 6500.

Im trying to find a way to get a EIN on the paypal record for taxes while keeping the account as the Ss on file is a friend, who doesnt want a 60k 1099.

hey just wondering that if you receive a payment but the payment was put on hold..and then it got reversed so you never got the payment cleared....does that payment count towards to the 20k limit of paypal??

It asks for a SSN OR a EIN number. Does this mean we can use a EIN instead of a SSN?

You Need to Upgrade your Paypal account to a Paypal Business account in order to Give them an EIN Number,,and then Pray that they Do not also ask you for your SSN at some point in the Future,,,

when I upgraded to a business account 8 months ago, they never asked for a SS, or an EIN number.

Well, if the have not,,,They will,,,soon,,,This all has to do with the New Tax Law that Just went into effect,,

ya im hoping as well as everyone else that this new tax law will only require a EIN with paypal and not a SSN

Interesting.

But, I mean. Again, the way to get around this is more accounts right? I have 8 stealth PPs spread out, not even close to reaching 200/$20,000 or even $13,000 on any single account. That gives me 8x as much time to sell.

Yeah, but nobody really knows what the watershed mark is for them to request the information. Could be 6k, or 13k. Too soon to get a handle on it. We will just have to accumulate all the information posted here, and kind of come up with a set point. Just as Jeff said. To soon to see how this will play out. Like I said before. I do not mind paying taxes, I just do not like third party entity having my SS#, DOB, and all the other information that can be used for nefarious purposes.

If you put the same EIN on multiple stealth paypal accounts linked to multiple stealth ebay accounts, they're going to notice, right? I know it sounds like a dumb question but I'm serious....sooo, this could basically mean the end, or a severe decrease, in the land of selling stealth for those of us who don't have real info on our accounts?

You CANNOT Give Paypal the Same EIN for multiple Accounts,,So YES it is a DUMB Question,,,

Stealth Accounts will Go ON,,,,,a BUNCH of workarounds are being Tested Right Now as we Speak,,,a solution will Emerge,,,.

One SSN can only be attached to one account, right? So wouldn't it be the same for EIN?

will amazon ask for SSN?

for paypal business account, will it ask for EIN or SSN? or BOTH?

I got the same notice and I am no where near any number. Less then 10k a year. I put in my SS and it says im clear.

I hope they dont lower the limit - It says 22k a year or 200 payments. Soon it will be 10k a year and 50 payments.

Another B.S. move by the IRS and Pay Pal to take your money.