Personal & Business PP accts & 1099

[djmusic]

I have both a personal pp account with my SSN and a business account w/ a tax id # where I am the contact name on it. Combined, both accounts total over 20000 and 200 transaction, but not individually. I had read somewhere on here that paypal will link accounts when filing the 1099. ANy truth to this? I can't see this hapening since the business account is, well, a business and my personal account would technically be separate income.

thoughts?

[FandangoKango]

Yes, they will link it if you give the 1099 with the same ssn number on there.

[KingRay]

Doesnt matter since most small businesses can just be claimed on your standard taxes with your SSN instead of filing completely different taxes on your business. BUT once you do file separately you will be stuck doing so.

Pretty much like when filing joint returns with a wife. once you do, the next year you cannot file single unless divorced.

[djmusic]

interesting points. I checked the pp website and found this in the faq section:

If I have multiple accounts that, when combined, meet the thresholds, but individually they don’t, will my accounts be affected?

Yes. PayPal and all other payment processors are required to report sales and transaction volume to the IRS by tax ID number such as a Social Security Number (SSN), or Employer Identification Number (EIN).

For example, if two accounts have the same tax ID number on file and have the payment levels shown below, PayPal will report both accounts on separate 1099-K Forms under the new regulation


It states "if both accounts have the SAME tax id #". but my business account has a FEIN # and my personal has my ssn. SO I would think that that this would not qualify as the "same" tax id number.

maybe i'm wrong though

[KingRay]

What I meant is that it wouldnt matter if they are separate as they will combine them as you said. BUT I do see your point as they wont really see the SSN on the EIN so they would not be privy to them being the same individual.

Sounds like you got it right but that would just be for paypal. It would all go together when reporting anyway so its just you reporting instead of paypal on the 2nd account is all.

Its pretty transparent though so if we all see it then the IRS will eventually as well. Just watch it is all...