Forum

Please submit tax id information for your paypal account
 

just received this email from one of my accounts

account sold more than 150 items and less than 200 items (all eBay transactions) but the amount of money was under $8000 total.

What happen if I don't submit Tax ID and let the account rest for the this year?
Will they going to limit my account anyway?
Or it will be reset next year?

Thank you

Quote:
----------------------------------------------------------------------
Please submit Tax ID information for your PayPal account
----------------------------------------------------------------------


Dear XXXXX

To comply with the Internal Revenue Service's (IRS) rules, we ask that you
submit your Tax ID number to us as soon as possible. Your Tax ID number is
one of these:

- Your Social Security Number (SSN)
- Your Individual Tax Identification Number (ITIN)
- Your Employer Identification Number (EIN)

We are required to obtain tax ID numbers from all online sellers who
receive payments for goods or services through PayPal. If you do not
provide us with your Tax ID number, your account access will be limited,
and you will be unable to request or receive money. After you provide us
your Tax ID number, your account will be fully functional.

Here's how to submit your Tax ID number:

1. Log in to your PayPal account.

2. A message will appear asking you to update your information.

3. Click Provide Now and follow the instructions.

If you have multiple PayPal accounts, repeat these steps for each account.

We'll use your Tax ID number to send tax Form 1099-K to you and the IRS
when the payments you receive meet the 1099-K reporting thresholds for the
calendar year. For more information, please see our FAQs on the IRS
reporting requirements: www.paypal.com/irs.

We appreciate your help in complying with these IRS rules.

Sincerely,
PayPal



PS HOW LONG DO I HAVE THAT I CAN GET ALL THE MONEY OUT SLOWLY???
THANKS GUYS

Re: Please submit tax id information for your paypal account
 

I have never had this happen, but I'd not list anything further until Jan. 1 and see what happens...no one can really know if and when they will shut you down, but hopefully you don't have zillions in paypal........I mean, who does....with their history, I could't sleep with them holding much of my money........

Re: Please submit tax id information for your paypal account
 

They'll keep your money until you provide what they what... You shouldn't have kept a large sum in there in the first place in cases like these. Next time always try to keep the minimum balance in your paypal account.

Re: Please submit tax id information for your paypal account
 

Are you sure? Explain your reasons for the first sentence.

:nono:

Re: Please submit tax id information for your paypal account
 

@OP, is the account currently limited?

Re: Please submit tax id information for your paypal account
 

nothing has happened yet. they gave me the notice and I am still able to get money out with no issue so far. obviously I know not to leave a large balance in there duh! but its kinda hard not to when u sell expensive stuff and slowly w/d funds.

so far so good but its a slow death for the account and I plan on dumping it soon since it seems to be on its way out.

Re: Please submit tax id information for your paypal account
 

whats crazy is the account had only 150 items all year sold and 8grand in total sales.

seems rather annoying it triggered the message and TIN notice on pp only averaging a little over 10 items sold each month.

pp is pretty whack at times and this is one of them. I understand about spreading sales but golly u really have to spread them even more now considering I was not really close to their 200.20k limits

Re: Please submit tax id information for your paypal account
 

I sell on accounts that never get close to the 20k, but do get near the 200 sales. As for your situation, do not sell anymore this year, wait until it resets and try to start back selling slow again next year (maybe even wait till feb or march). I have had similar accounts to yours that did not end up being dead. Keep withdrawing slowly like you are doing.

***From my experience, stop at about 142 transactions per year on accounts that do not come close to the 20k, and you will not get the notice.

Re: Please submit tax id information for your paypal account
 

I received the same email from PP in early November for my main stealth account. I have had approximately 180 transactions between eB and Bonanza but no where near $20,000.00 in sales. I requested an EIN from the IRS (online), waited 3 weeks to be sure the IRS updated the information in their system and then supplied the EIN to PP. So far no other requests or contact from PP regarding this issue.

Re: Please submit tax id information for your paypal account
 

just an update on this I am still slowly trying to get money out of the paypal. and its working.

tho pp seems to be slighlty aggressive on how fast they want the TIN added. they gave me a force screen when I first logged in and then let me go to the home page.

hoping I can still get funds out by next week. I am only w/d in low increments as not to raise any flags. I hope this info helps others that trigger it.

Re: Please submit tax id information for your paypal account
 

I make my EINs as soon as the account is made so I can add it immediately if I get it in the future.

Re: Please submit tax id information for your paypal account
 

EINs how many can one person get? and doesnt that mess up your taxes. not sure I wanna get involved in all that crap

Re: Please submit tax id information for your paypal account
 

You can have as many as you want. I don't know if/how it affects your taxes...

Re: Please submit tax id information for your paypal account
 

Will adding an EIN mean no matter what pp will report it to irs? If an acct doesn't get close to 200/20k but is registered as a business, do you automatically get the 1099?

Re: Please submit tax id information for your paypal account
 

A lot of good info and some bad info in the thread.

John007 is WAY off base and 100% inaccurate. He needs to start posting on things he knows only before he causes people harm.

I would wait for the reset. They are not going to restrict your funds for this reason. If you get a second request they will limit the account until you supply tax info but still not hold your funds.

Re: Please submit tax id information for your paypal account
 

John007 you are WAY off base and 100% inaccurate with these comments. You need to start posting on things you know about before you causes people harm.

Why a minimum balance?
What is a lot of money in paypal to you?

Your PM to me today says a 8 million dollar business is too small for you. I can only assume you are selling tens of thousands of dollars a day and most likely have a few hundred thousand in paypal accounts at all times.

Re: Please submit tax id information for your paypal account
 

Great, great great.

the cowboy tax experts out giving bad info again.

Has anyone read the forum?

Or ya'll on a testostrone high to pollute the forum with your junk?

:mad:

Re: Please submit tax id information for your paypal account
 

Mess up taxes?
a Business has significant tax savings for 99% of all people along with other reduced liabilities and added perks.

Re: Please submit tax id information for your paypal account
 

Definitely the incorrect posters need to get financial consultation pronto to understand the tax rules

Re: Please submit tax id information for your paypal account
 

I would "Thank" this post but my thank quota seems to be full :)

Re: Please submit tax id information for your paypal account
 

What they need to do is stop posting incorrect info.

It's quite simple.

Tax advice is for professionals to give.

Forum users are meant to direct others to the correct sources.

Re: Please submit tax id information for your paypal account
 

Sooooooo many want shortcuts tho GreenBean. There just aren't any. I cringe when I read some posts. The I/R/S website is free and has tons of info AND not to mention has been posted here about 300,204 times.

Re: Please submit tax id information for your paypal account
 

My understanding is that as a sole proprietor, you may only have one employer identification number, no matter how many businesses you own as a sole proprietor. All your businesses must use the same EIN number. Am I incorrect? Source?