I have gone over 200/20000 total, but that combined last year and the first two month

[markflood]

I have gone over 200/20000 total, but that combined last year and the first two months of this year.

My account is 8 Months old, 100% feedback,

1. In December they remind to add tax id, I ingore because I know won't have get near 20,000 sales in a year.
3-4 months later my account is limited, and asking for tax id. I can withdrawal but i cant get payments.
"The IRS requires PayPal to send you a 1099-K form when payment transactions for your accounts reach IRS thresholds. Please click Confirm to let us know your tax ID number is accurate, and to confirm you're the account holder."

2. I thought it was 200/20000 total in "CALENDER YEAR" before paypal limits an account? last year was 12, and this year 5-6k so far so it should be separated!
My question why are they forcing me now to provide one, my plan was to keep it under 20,000 and move to another account till next year for my stealth? I didn't get EIN yet, but I am applying for one now....

Information: Sales under 12,000 for last year, this year first 3 months average 2-3,000 a month

[Sandy D]

It is not 200/20,000.

You will get the REQUEST in most cases long before that.

You will get the request as low as 5000 in sales and not even close to 200 item sold.

It is the potential of you hitting those numbers.

If you got this request last year and did not comply then you will see it again and after a period of time the account will get limited unless you provide the info they want.

Request is different then actually getting the 1099.

They are preparing you to be ready to provide them the info needed as you have the potential of hitting those numbers in a calendar year.

If your sales last year were good and then they see a rise in sales this year with the potential of hitting 200/20k you will get it.

Based on your sales of last year and this year you must appear to them to be on course to hit 200/20k.

People are confusing this information. There is a difference in the two.

[markflood]

Okay I understand, my sales first 3 months is about 1. about 2k, 2. 2.5k, 3. about 2k,
They limited because it on pace to over 20k?
so 2x12 = 24k potential sales

I have another account that is less than 2k sale per month, and they been asking tax id for over 6 months now, it not on pace to 20k, is that why its not limited yet.

[Sandy D]

They limited it because they must have requested the info and you did not provide it?

[markflood]

I didn't give them the ein yet, because I thought it had to cross or near the 20k amount in year before they limit, they been asking for 3-4 month for my tax id.
also....
will they limit my other account that has less than 2k sales and not on pace to 20k a year? they been asking over 6 months for it, i just ignore it... don't want to get so many ein, do you think having so many ein will be a red flag for irs? or no....

[rsot]

200 or 20k is only a guideline - pp is known to cause hassles on accounts way before that depending on what is being sold, rate of money coming in, PROJECTED revenue...projected is a big part of the equation

[markflood]

okay got it, got to go with the "projected and PROJECTED sales" thanks

[Sandy D]

Originally Posted by markflood

I didn't give them the ein yet, because I thought it had to cross or near the 20k amount in year before they limit, they been asking for 3-4 month for my tax id.
also....
will they limit my other account that has less than 2k sales and not on pace to 20k a year? they been asking over 6 months for it, i just ignore it... don't want to get so many ein, do you think having so many ein will be a red flag for irs? or no....

But did they request it?

If they did and you did not provide it then in time the account is toast.

We cannot answer the other question as no one gets it with the same numbers. If they asked for it 6 months ago you can almost bet you are walking on thin ice. Cool down time to see.

Lots of backups and being prepared. Spreading out sales etc.

[markflood]

First they requested it 3-4 months ago, a message i see at the top of my paypal, reminding me to add tax id, now i got email a few days ago to provide a tax id, and I can't receive payments but i can withdrawal.
the account is limited, the only step is asking is just add tax id... nothing else, I don't think its "Toasted"

message is on my paypal
"To remove the limitations on your account, update your profile.

Begin a limitation review
xxx, 2013
The IRS requires PayPal to send you a 1099-K form when payment transactions for your accounts reach IRS thresholds. Please click Confirm to let us know your tax ID number is accurate, and to confirm you're the account holder.
"

[Sandy D]

If it is limited it is toast.

If you cannot receive payments then what good is it?

[markflood]

If i added the tax id the limitations will be removed right? its only asking 1 step, add tax id, thats all

[GreenBean]

Originally Posted by markflood

If i added the tax id the limitations will be removed right? its only asking 1 step, add tax id, thats all

Other users have done that and are still operating.

Keep in mind that paypal MUST be seen to comply with IRS requirements.

We are guestimating the logarithms in place to determine tax ID requests.

This much I know, variables apply.

Choice would be to consider conforming to their demands to ensure continuity of your successful selling.

[markflood]

okay i understand...
my other questions are
1. I have an account, i change the stealth account to business account by providing them EIN number, the EIN number I received has my business name and Tax id on it. My question is will paypal send my 1099k to me in my business name and address? Is this correct? has everyone run into this

2. Can 1099k tax form be sent electronically ? I mean can paypal send the 1099k to my email and not mail it to me.

[GreenBean]

far as I know the info comes out to match whatever name you have put down. So that name must match to a T whatever your tax info is.

I sent you a pm with a link confirming that yes, it is possible to send the form electronically. In fact this is how I deal with the issue.

When you get a chance, mark, look thro' this site.

Internal Revenue Service

Despite being the Government, the site is really user friendly for stealthers

[markflood]

So if i put my ein number and business name example John Enterprises, paypal checks the business name and ein and its passes, this makes my paypal account a business account,
Are they going but my business name on my 1099 form as John Enterprises and the address or stealth name on it???? I was hoping it will be John Enterprises on the 1099

Thanks i looked into it, Does Paypal have a option not to mail the 1099 (showing my sales for the year) to me, but electronically sent it to me??? I thought i read this on the forum but I can't find it no more

[IronManWU]

does anyone know if the 1099-k shows what type or category of items you sell?

[markflood]

I am changing my paypal to business account.

I applied for ein, and have the mailing address and physical location different.

When I got my ein electronically from the irs, the pdf shows
Company Name
MY name
4993 example dr.
FL 39222 (WHICH IS THE MAILING ADDRESS)

But the phyiscally location is another state.
Company Name
MY name
7777 example dr.
GA 39222
When i applied for ein, i put phyiscal location of the business and mailing address which are different........
EIN have to match your business name and address? Because I am going put my ein on my paypal, I know there check the business name and address.... but which address should I put in the mailing address or the physical location , I should made both the same so i don't miss myself up, can anyone help?

[slim jim]

You put the physical location, mailing address is only seen interbally

[markflood]

Originally Posted by slim jim

You put the physical location, mailing address is only seen interbally

So I put the physical location (GA address) and my ein in paypal? not the mailing address (FL address) even though my ein i got from the irs show my business name, my name and the mailing address? on the letter i receive online am i correct.

[rsot]

The physical location will work fine - mailing address only comes into play if PP wants to investigate you HARD...that will depend on how you operate...

[markflood]

My I got ein, and added it my paypal account is not limited no more (UPDATE< BACK SINCE LAST WEEK

[GreenBean]

Well Done.

Usual practise with paypal.

Provided the seller complies to the request for tax info, this is the outcome, a resotred account.