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What happens when Tax info requested?
 

What happens when Tax info requested and do not supply an EIN?
I very specifically mean what happens to the funds in the account? Do they get frozen? Or is the account only limited to receiving more funds?

Lets assume account has had no issues of any kind.

I am considering overselling on a couple of accounts that I don't want to EIN while working on new accounts at the same time. Mostly I want to move a pile of $500.00 items and don't care if I cant use the accounts until next year at this point.

Thanks in advance for sharing your experiences!

Re: What happens when Tax info requested?
 

There are several options.

They're doing this because you're approaching the $20,000 limit. When you reach $20K, they are required, by law, to report this.

If you can get another PayPal going it is strongly advised. Otherwise, you'll have to put your SSN or EIN number there.

If you can go back and add all your paypal totals (including shipping) and keep it under $20K (even $19,999) you will not get 10-99 Form.

Re: What happens when Tax info requested?
 

This infomation is also requested on projected sales.

Re: What happens when Tax info requested?
 

Adding another Paypal account to an Ebay account that already has a Paypal is not advisable.

Re: What happens when Tax info requested?
 

I am very familiar with 1099k etc...Thank you but I don't think you understand my question.

Re: What happens when Tax info requested?
 

Maybe I am not clear.
What I am considering doing on some decent accounts this late in the year is say list 20-30 five day auctions today, all ending on Sunday and all will end at $500.00 or more per account. Each account will collect 15-18K in a single night.

These accounts are good standing stealth accounts with not a single issue. Ebay will not care but it for sure will trigger the tax request.

What happens when I do not supply an EIN?
Does paypal freeze the fund? Or simply limits the account until next years reset?

I am sure some of the long time sellers have had some experience with this.

Re: What happens when Tax info requested?
 

Is there a reason you do not want to supply an EIN?

If a request for any sort of tax infomation or documentation is received it will stay on the account until the request is fulfilled. A tax infomation request will not go away the next year.

Re: What happens when Tax info requested?
 

Yes. Don't want to open any more companies this year.

[quote=JamesNorth101;602831If a request for any sort of tax infomation or documentation is received it will stay on the account until the request is fulfilled. A tax infomation request will not go away the next year.[/quote]


I did not know this and that is OK too. Just don't want funds frozen.

Re: What happens when Tax info requested?
 

This may be a little off topic but do accounts made like 2 months 100% reset the start of 2015? I just started about 15-20 stealths around Sept. That would be AWESOME if I could get sales for this last quarter then have it reset! I might be able to get some TRS if they reset. Im more so referring to the (projected listings/listings) as I would most likely hit that limit before 20,000.

Re: What happens when Tax info requested?
 

accounts made like 2 months ago**

Re: What happens when Tax info requested?
 

They do reset in the new year.

Re: What happens when Tax info requested?
 

If you get a tax limit cash out your paypal and change ip clean cookies and set up another paypal.

Re: What happens when Tax info requested?
 

From experience?

Re: What happens when Tax info requested?
 

Yes, i got hit with tax id limit waited for funds to clear on that paypal. Once available i sent the money out then cleaned the cookies and changed ip. New paypal is doing fine

Re: What happens when Tax info requested?
 

Just the regular 21- day hold? Or a limitation hold? such as the 30-45-90-180 day hold?

Re: What happens when Tax info requested?
 

Wait for the regular 21 day items must arrive hold to clear (4-5 days), then move the money. Also dont use old tax limited paypal to fund new one......

Re: What happens when Tax info requested?
 

I'm trying to figure out the same problem,from what i understand there are 3 options.
1) Operate under 200-20k each year. It will reset on January? (is it true for all country's?)
2) Cash out and forget about your account.
3) Can't find enough information about this one, need to speak with an accountant and a lawyer to make sure whats the worst thing that can happen.

Re: What happens when Tax info requested?
 

I wonder why isn't more people here having this issues with stealthy, 200 sales is nothing on the year, can easily be done in 2 months with low $ items. Do they have the same rules even if not close to 20K? Like around 6K for example?

Re: What happens when Tax info requested?
 

Paypal has been known to limit accounts based on PROJECTED RATE of sales so...can happen well before 200/20k

Re: What happens when Tax info requested?
 

From my experience paypal puts a soft limit on you anytime you near 18k most of the time atleast, and then i cant accept any more payment but then the next year it resets and the paypal is fine and good to go

Re: What happens when Tax info requested?
 

Your info is inaccurate.

Another paypal can not be added wisely.

paypal are known to send out 1099 if they project sales are going to reach $20,000.

AND if you are wondering, my reply is based on my own personal experiences with USA accounts.
:ballchain:

Re: What happens when Tax info requested?
 

Thanks 123!!

Re: What happens when Tax info requested?
 

No. Rules differ from country to country.

Re: What happens when Tax info requested?
 

Sorry if this is a basic question.
But I found different answers to this.
Is this 200 Sales AND 20,000 to be asked for Tax ID?
OR
Is it 200 Sales OR 20,000 whichever comes first?

I have some accounts with cheaper items that would easily
reach 200 sales in 3 months but won't cross the $2500 in
sales.

Re: What happens when Tax info requested?
 

200 AND 20k

Re: What happens when Tax info requested?
 

Thank you.
Do you think I will be safe with around 300 transactions
and about $3000 a year, that would spread evenly every month
from January. Not sure if this can be answered but...

Re: What happens when Tax info requested?
 

You should be I've never gotten one that low, lowest I've gotten a notice is around 9k

Re: What happens when Tax info requested?
 

You would not be required to get a 1099K BUT most people report that around 150-180 items and they get the request.

Re: What happens when Tax info requested?
 

Thank you 123. I was under the impression that I should stop selling
after 150-160 transaction no matter the amount of money that
came in, to avoid adding tax ID.
Good to know this is not the case

Re: What happens when Tax info requested?
 

Actually I should preference my statement by saying I sell higher dollar goods, so that scenario may actually be different

Re: What happens when Tax info requested?
 

Yeah, this is what I read in other threads, this is why I brought it up

Re: What happens when Tax info requested?
 

I think I sell the lowest-end items of everyone here. And I'll tell you that I am getting tax ID requests at anywhere from 175-195 transactions, with a total received $ amount being ~$1,400 (of which, $400 was spent on shipping, eB and PP fees[I sell $5 items with $2 shipping]). This has happened to me several times, and as the year is coming to a close I am dealing with what I call "The PP Shuffle" 2-3x a week.

As for the OP's question: You are limited from receiving money, which causes an upset in your cashflow from your eB auctions, but you can still spend and withdraw your funds as you wish.

Re: What happens when Tax info requested?
 

So what I see as a worst case scenario is some people can not pay if the request/limitation happens before all funds are received.

If that happens, a manual invoice from another PP or credit card should resolve this potential issue for my particular items.

Maybe I loose the ebay/paypal account, maybe not(no big deal either way on these accounts)

This forum is all about first hand experience and learning from each other for faster and more profitable business and this is exactly what has happened on this thread.
Thanks for all your input!

Re: What happens when Tax info requested?
 

I just need to understand one thing, is opening an ein number with irs using your name and social security to open it as an LLC for a stealth account; will paypal find out who's ein is it? If so then what's the point of opening an ein like other people are suggesting.

Re: What happens when Tax info requested?
 

its not about 20K limit. I was asked to update the tax information. My sales were only around 3k+ and account is only 3 months old.

Re: What happens when Tax info requested?
 

Re: What happens when Tax info requested?
 

I wonder how to add this EIN? PP wanted me to upload documents to prove my identity before letting me to add this EIN. Is there something I missed? Thanks in advance.

Re: What happens when Tax info requested?
 

Which documents bangbang? Post a screenshot with your username blocked out

Re: What happens when Tax info requested?
 

We do need more info.

Can you give us more info for better replies, please?

::juggle:

So I bought this 1000 limit account and reach 189 sales within the first month, then the tax ID request came up. I didn't add the EIN immediately because I don't have it by the time. Then I waited for some time, when I try to add the EIN, the page directed me to input a SSN. it basically wanted me to prove I'm the person. I can still add a SSN into it before adding a EIN.