Does paypal check names on EIN to the IRS ??

KingRay · #1 05-03-2011

I am getting ready to deal with the EIN thing on paypal. Can I use the EIN with a stealth name? I dont see paypal really doing a check with the IRS on making sure the name is the name on the IRS forms.

I was hoping it was similar to the bank account thing where you can have a real bank account and paypal doesnt see the real info.

jeffweico · #2 05-04-2011

Quote:

Originally Posted by KingRay

I am getting ready to deal with the EIN thing on paypal. Can I use the EIN with a stealth name? I dont see paypal really doing a check with the IRS on making sure the name is the name on the IRS forms.

I was hoping it was similar to the bank account thing where you can have a real bank account and paypal doesnt see the real info.

No. The IRS REQUIRES that they validate the information. In the case of an EIN, the business name AND the name of the RESPONSIBLE PARTY must match. If it does not, then PayPal would receive a "no match" response from the IRS. The IRS will NOT give out any of the information they have on file, just a response of "match" or "no match".

At that point, PayPal would have to clear up any discrepancy and re-submit OR withhold 30% of your gross revenues as backup withholding.

KingRay · #3 05-04-2011

Quote:

Originally Posted by jeffweico

No. The IRS REQUIRES that they validate the information. In the case of an EIN, the business name AND the name of the RESPONSIBLE PARTY must match. If it does not, then PayPal would receive a "no match" response from the IRS. The IRS will NOT give out any of the information they have on file, just a response of "match" or "no match".

At that point, PayPal would have to clear up any discrepancy and re-submit OR withhold 30% of your gross revenues as backup withholding.

Then how would we use an EIN for stealth accounts then? I dont get it.

My paypal is in my adult sons name when they ask for the EIN or SSN when I get closer to the 20k I want to give them my recently acquired EIN #. Now I cannot do that?

What would you do? would it be better to just go with a new stealth paypal account and attach it to the ebay account prior to them asking for the SSN/EIN?

jeffweico · #4 05-04-2011

Two possibilities. First, the RP name CAN be changed with the IRS. It happens all the time. Second. One businness entity can be owned by another. A little complicated, but perfectly legal.

berryfine1 · #5 05-08-2011

I'm just starting to get back up and running. OP's situation sounds a bit like the one I am going to encounter.

A little background, I am only going to need one account, I just sell regular household items, baby items, and clothing, no vero items (that I am aware of).

Because I didn't have the info. in the guide I tried to open new EB/PP accounts in my husbands name, but they were shut down. I have my 20 yr. old son's permission to use his info. We are going to open a bank account in both of our names in case there are any id verification issues w/PP, his name will be first and we will be using an address that has not been used before and a debit card attached to this bank will not be an issue.

My questions is, I would like this to be a legitimate account and eventually claim it as a business for tax purposes. So, if my sons name is going to be on the EB/PP account is there a way to make it be mine and my husbands? DBA/LLC and still have my son's info on the EB/PP accounts? Can you later change the PP account info. to a DBA/LLC after the verification on the personal name? I can't afford to get the LLC from the start, I have to make the money first.

Grrrr, this is such a mess! I thought that I would be able to create a quick new account, make the money to pay the old one off, get them back and move forward in the same way I was. Sadly, after joining this forum I have all but given up on ever getting them back based on the wonderful info. here. I have learned my lesson.......I will ALWAYS leave money in my PP account to cover the cost of any buyer returns/chargebacks until the transaction is completely finished. FB left and DC showing delivered. Funny thing, my issues were with US buyers and not with one of the many Int'l buyers I deal with.

So sorry for the longs posts, I just want to make sure I don't screw up and this is going to be my last chance to have a legit account because I have run out of legit info. after this.

KingRay · #6 05-08-2011

Quote:

Originally Posted by KingRay

Then how would we use an EIN for stealth accounts then? I dont get it.

My paypal is in my adult sons name when they ask for the EIN or SSN when I get closer to the 20k I want to give them my recently acquired EIN #. Now I cannot do that?

What would you do? would it be better to just go with a new stealth paypal account and attach it to the ebay account prior to them asking for the SSN/EIN?

I wanted to get back to my problem here on my post. Thanks. Anyone??

KingRay · #7 05-10-2011

I'm getting very close and paypal hasnt emailed yet. I am assuming its coming any day now.

Can I just put my EIN on an account that has my adult sons name and stealth details on it?

Just leave his name on it?. When paypal reports to the IRS surely all they would report is a EIN number. I dont see why it would matter for them to mess with any other details.