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Has paypal been holding money for the IRS?
 

Has Paypal been holding money for the IRS?

Accounts are 3 months old
selling 100 items a months gross sales of 1,500

I have the provide tax ID message up

All fund are available

But it seems money from paypal from the day before + sales that day - shipping fee does not add up to the new paypal balance the following day

Have you calculated paypals fees into this ?
What goes in is not what comes out.

I dont believe they would legally be allowed to do this.

Holding funds for money you owe the IRS would not be a smart thing for them as it is you who has to pay the IRS and would deal with the IRS yourself.

Paypal would be putting themselves into major lawsuit territory if they were in fact doing this and it got out.

Not that pp likes to follow laws but I cannot see them doing this.

Re: Has paypal been holding money for the IRS?
 

Yea I don't even think they'd want to be responsible for such a thing

If you're subject to "Backup witholding" your darn right PP will keep money for taxes, 28% in fact.

If they don't, then PP is liable for your taxes.

Backup Withholding - Avoid 28% Backup Witholding on Credit Card Transactions

PP would not be messing around with IRS - penalities would be HUGE.