Paypal 1099 Limitation eased???

[guitarca18]

On Thursday night I had two of my primary stealth accounts (well over 40k grossed this year) somewhat limited. The restrictions were 1. Cant close account 2. Can't accept payments. and then there is a big list on the left side that said what I could do...that list was pretty irrelevant since I couldn't accept money.

Obviously this caused a problem with buyers. They could use a buy it now but received some error when trying to pay. I called on one of the accounts but paypal wouldn't budge..I even asked for an extension on the problem or at least to allow payments but hold the funds until I finalized my S-Corp paperwork. No dice.

This morning I noticed payapl payment emails on both accounts..I just logged in and they changed the restriction to only be. 1. Can't close accounts.

I wonder if some $#@#$@# at paypal finally realized they were penalizing the buyers not the sellers putting the block on receiving payments and eased up the restriction..Probably got tired of the calls from sellers and buyers alike. Either way it appears I may be ok for a little bit but I'm still working on how to make all this work and still maintain stealth.

[KingRay]

What was your limitation caused by? Doesnt make any sence to begin with until we understand why they limited it.

How are you doing 2 primary stealth accounts with that much income? how are you handling Tax ID if you are stealth?

[guitarca18]

Originally Posted by KingRay

What was your limitation caused by? Doesnt make any sence to begin with until we understand why they limited it.

Reason was in the title of the post but basically because I have not provided my tax id information on these accounts and ignored all their pesky emails.

Originally Posted by KingRay

How are you doing 2 primary stealth accounts with that much income? how are you handling Tax ID if you are stealth?

These are actually my low grossing accounts. . Series LLC's with separate EIN's registered by a nominee service and business names registered to different virtual addresses(which are my own) in the state where I opened the LLC's

[KingRay]

I hope you have a lawyer in the middle of all that to protect your interests.

Series LLC's with Nominee's on each? That is a legal nightmare. Not saying you arent on top of it but if that is just something you looked up and feel will work for you then please please do what I said and talk to a lawyer. that is the ONLY way you will get that mess how you want it.

Those are for different business models than selling online.

Anyway, just make sure you dont screw yourself on that.

[guitarca18]

Well technically these are different business models. Each of my accounts sells completely different items. And yes I've consulted a lawyer. It accomplishes what I need which is several different EIN's from different information.

The nominee basically releases his interest in the company immediately after filing for the EIN in a notarized document.

[guitarca18]

I should also iterate..I am not here to circumvent paying my taxes...Up until this point I have paid taxes on every single dime I have made in this business at the fed and state level.

My sole purpose is to keep my stealth accounts un-linked through all of this. I am actually allowed to sell on ebay in my real name but I don't want to go through what I did 3 years ago which was a year long ban if eBay gets trigger happy...My accounts are 3 year old established accounts with 100% feedback..Most of them gross well over 40K a year and I've never entered any Tax ID info in.

As for Amazon, well they allow one account per entity...I have four...an Amazon is my money tree...I have to keep the big guy happy and off my back.

[cherrqell]

Originally Posted by guitarca18

I should also iterate..I am not here to circumvent paying my taxes...Up until this point I have paid taxes on every single dime I have made in this business at the fed and state level.

My sole purpose is to keep my stealth accounts un-linked through all of this. I am actually allowed to sell on ebay in my real name but I don't want to go through what I did 3 years ago which was a year long ban if eBay gets trigger happy...My accounts are 3 year old established accounts with 100% feedback..Most of them gross well over 40K a year and I've never entered any Tax ID info in.

As for Amazon, well they allow one account per entity...I have four...an Amazon is my money tree...I have to keep the big guy happy and off my back.

Well done!

[FandangoKango]

40k a year x 3 = 120k your a baller. Share?

[KingRay]

All that cash and no request for info on any of them?? odd

[cherrqell]

Originally Posted by KingRay

All that cash and no request for info on any of them?? odd

I thought about that too. Awhile back i was getting nervous about having to submit my info when I was well over the threshold, then it occurred to me that years ago, I already submitted all my info including SS#, but just forgot.

Perhaps the OP already has that info on file with them and forgot.

But for them not to require the tax info at this time is puzzling. Maybe a glitch?

[FandangoKango]

I love how people come to brag when its not true and just gets me more motivated!

[guitarca18]

I've built the accounts up over the years. I def didn't start off pulling 40k per account per year. LOL.

As far as the limitation being eased I'm sure it is temporary but it does seem odd and was unexpected that it was just lifted and/or changed....For now I'm working out my EIN setups so I can remain stealth to paypal and amazon. Hopefully I'll get everything put together before they limit me again..

[KingRay]

I have a feeling they wont let you do that nominee thing? maybe not that they wont let you do it but i think you will have problems confirming who you are to the sites. maybe not but dont see a way around it really.

There is ways to create a business and be completely hidden from everyone but the IRS BUT the problem is places like PP and amazon dont like those type of businesses. They want transparency