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went over the 20k limit on paypal
 

So I hit the 20k limit on my stealth account over a month ago and forgot about it, I am still selling on the account should I stop?
What will happen at tax time when they send the 1099?
Thanks

I dont think you need to fill it out since it's a stealth...I mean if I made up Bob Jobe, do you really think they will go to Bob Jobe's address?

You will be fine.

If they allowed you to hit the limit then it must be an account with your SSN on it then. In that case you will be liable for the taxes on 20k.

there is no ssn on the account ive had the account for over a year and a half though so maybe thats why. guess will have to wait to see what happens when they try to send me the 1099 and it gets returned.

If they dont have an SSN then there isnt a way to send one to the IRS.

I have reached it (20K) today actually as well and still no email from paypal. Not sure how that is working.

I am sure both of us will get an email soon saying enter one or you will be suspended indefinitely.

They may also hold 30% of your earnings until you do. That is what I have read in the past about it. Have not ran into anyone that has had to do that though, YET.

Hold 30% for IRS?
 

Please keep us up to date because if it's possible I would like to keep accepting pp on my stealth account. I just signed up for propay also and am adding that to my acct but am also deleting pp from my auctions. Should I keep PP also on there even though I know I am close to the limit? I got a phone call, went to vm, from pp last week. Thanks! :hail:

I did get my email at $38k finally. I went ahead and posted the EIN since I am completely business "ized" now. lol

I dont know how long they give you and didnt want to find out.

Wow, almost double the normal limit. NICE

Cool! Will go ahead & keep accepting pp until I get an email! I got a phone call so I am wondering if it's the same? If I do I guess I will give them my EIN & pray it's not linked!

Yup, Ride it until the wheels fall off....

how do we check how much we've made in our paypal?
and this is for 20k thats accepted into your paypal over 1 year?

thanks!

I just got my email today from PP. It's a stealth account. For those who posted EIN, are those your stealth account?? Please keep us all posted. Thanks!

I would keep everyone posted on the ways to do this but seems all posts just get deleted and threads closed for some reason. I like to make sure everyone knows what is involved ,etc with the IRS and EIN, SSN since I am well versed on business practices but not worth typing if the next day its gone. :noidea::confused:


To check your paypal account go to the monthly downloadable spreadsheets for your sales. Dont go by anything else or you will be off.

YOu would be surprised on how fast shipping and direct invoiced sales add up.

You will have to simply add up each months total. I have yet to see anywhere where you just have a running total. dont think there is one.

There is an area that shows total revenue month to month in PP. I will try and list the steps to get to it, but it is definitely in there.

Lol i get limitted after i sell one item for over 100 dollars but probably cause they see I was selling vero on ebay. software

Just got the email on Friday, will put in my ein today & let you know how it goes. Wish me luck!

Everyone needs to be prepared as I recently got the pp letter and I am not even close to 20k on the account.

I believe they are looking at the "potential" of your account hitting the marks as well as the numbers.

They send the email ahead of time, so you have ample time. But your not required to enter it till you reach the limit.

question for king ray or any others with this
 

experince i hit 39,000 before i got the "request" i got to thinking i had two bay users accounts linked to one pp did this give us a 40,000 cap instead of 20,000 i know this goes against stealth accounts but if this works its worth scarificing one name for another 20k !

Has anyone called and asked? I don't do 200 transaction per account in a year. But I have many of the requests,

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You have to enter it if they ask because they will limit the account until you post the SSN with them. They give you a couple weeks to do it and then they suspend it until you post it. some have had this happen at 6k and others at 13k and got limited until they posted the SSN.

Have had an account asking for 2 months now. No limits yet

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Following up again as this is a important question. Who exactly has reported this and are they trustworthy sources with screenshots? Screenshots or it didnt happen

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I have multiple accounts that have asked for SSN 2-3 months ago, and I haven't entered it they just constantly remind me but thats about it the accounts are fine and receiving payments. As long as it doesn't go pass the limit, not required.

Okay then maybe they decided to do differently. On my 2nd account I was close to 20k so maybe that is what happened. Yeah they probably bug you until its close and then shut it down.

I seriously wouldnt expect this situation to happen this way next year where people just stay under the 20k limit. I would almost bet that if you upgraded to business account all earnings will be reported either next year or soon after. just watch.

People say thats BS but if you state you are a business as you do when you upgrade the account then you are saying you are going to be liable for taxes on it. Then only way to assure that is to require all reporting on business accounts. it will happen, there really isnt any other way for the IRS to stay on top of businesses.

What are you talking about???

i got the same email today but i dont have 200 payments gone thru or 20 k should i be worry ?? i started selling since january this year i havent got limited in anyway yet still gething payments anyway around this the should be a flaw rite ?? i mean where are running stealths

You Will Get Limited Sooner Or Later

Received the email the other day. Ive had this acct for 3+ years under a business name. I basically just got a business checking out without a tax ID # and have remained under the eBay/PP radar for 3+ years. Now they want SSN, EIN or TAX ID... all of which require MY name. Is there any way around this? I've just hit the 10K mark for the year, so I'm nowhere near 20K. This is just a side business that provides a bit of extra income. I was banned years ago for youthful stupidity (nothing illegal, just took my sweet ass time mailing things out when I was in school and made things worse by opening new accounts.) Is it time to just give up, sell everything and forget about internet sales forever? I have no problem with paying taxes, I'm just worried that the minute they get my real name they will link it to my old account(s) - even though they never had my SSN on those old accounts. And I no longer live where I used to (same state, but 100 miles away.)

I'll be on this site for a bit doing some research... any opinions in the meantime are welcome.

<<<<<

Edit:

Just reread something Ive read 10 times this week... I'm an idiot. I thought it said YOUR NAME.

"Provide your company EIN and company name."

So... I don't have to provide my name... paypal would have to look that info up, and what would be the odds of that? So basically I just need a EIN and I'm all set??