PayPal now asking for your Tax Info. Seems those wars are strating to cost!
 

Now Paypal is asking for Tax ID info.. I guess the wars are catching up and they want the money.

Lots of people are going to get slammed this way.

US tax system probably want to know that...

To launch a new account ... ?

I just logged on and wasn't advised to supply any additional financial info ...
They do have my banking #'s so perhaps that is why ... :)

whoever thought that Paypal is a safe way for tax evasion until now was wrong anyways

It came up when we logged in. Are you in the US? Not sure whats going on with it.

paypal.com/irs

https://cms.paypal.com/us/cgi-bin/ma...ng_us/IRS6050W

Some of you wont have to worry about it as you are not moving enough.

I reside the US ...
I have been associated with Pay Pal and E-Bay for many many years now ...

I just logged on and my limits are still approved ... :)

Only if you do 20k or more in a year...

But this is no surprise? Who the hell is dumb enough to hide paypal revenue?

Did you see the link to the IRS page? You have to do X $ in sales or transactions.

Might be that you have not hit the limit this year.

I pay taxes on my Paypal anyways. It doesn't matter.

We pay on over all income as well so it wont effect us but I know a lot of people use them like Epass.

Never was an issue.
But,I never was receiving "over $20,000 in gross payment volume AND over 200 payments"

paypal is a great way to launder money. people selling goods and services all day long and there is no records that get sent to the IRS. I have friends that only do business on paypal and make $100k+ but only report they make about $15,000 a year in taxes :1orglaugh

Can't you file for Foreign Income Exclusion? Get over 90k tax break.

That's only the same as running a pizza place and throwing out the cash register
receipts.

So it's not like paypal has some kind of system that is helping people hide money more
than any other business.

No the money has to be earned OUTside the US. What we do earn from outside is excluded.

Not anymore! :1orglaugh

// edit, nevermind, I don't do 200 payments a year.

that is stupid. paypal would hand over that info in a heartbeat if asked by the irs, like ebay did to revenue canada for all canadian power sellers.

they told everyone about that a few years ago when the laws changed that this coming up tax season it would apply

Yes I fully understand ... I exhaust a considerable amount of finances through Ebay / Pay Pal ...

Eg :

Purchased my Boehm Ram
( http://boehmporcelain.com/ )
Extremely expensive ...

I purchased this peice for $500.00 from E-Bay and it is estimated at around $3500.00
...

http://i.imgur.com/wK5sg.jpg

Not to mention the antique Brunswick radio it is sitting on for $300.00
(Est value $700.00)

So I am not to sure of additional tax info that is needed on individuals that are very well established with pay Pal ...

If only Paxum/payoneer and other evasion methods were forced to comply.

Its not because if what you BOUGHT. Its what you sold. Income. Not outgo.

At the end of last year it was announce that all 2011 US income at paypal will generate a 1099 report to the IRS.

None of this is "news".

The law in regards to the 'paypal' (and alike) services was changed at least two years ago, and set to go into effect this year. Your accountant, or CPA should have advised you of this already as going into effect in 2011.

:2 cents:

I hope they have fun when the IRS gets their Paypal records for the last ten years and threatens them with prison time and back taxes and penalties of $500,000.

I pay my taxes so this is nothing new for me :) Instead of "other income" it will now have a official name ;) Pay your taxes honest and you sleep better at night hehe

Oh okay ... well then I am safe ... I do not sell items on E-Bay only purchase ...
But
I do have a least $1400.00 on account ...


Should I pull these funds and only add in the event of a purchase ?
or just leave as it is ?

I like trying to explain to the IRS guys about sending $100 paxum to someone and receiving $100 on paypal is not making income on my part..

There's only one safe way for that and that's cash :1orglaugh

I hate taxes, but I still pay them and declare all of my paypal, paxum, okpay etc income.

If you don't, those guys can make your life a living hell...

what he said.

$20,000 USD in gross payment volume from sales of goods or services in a single year
200 payments for goods or services in the same year

Yep. And to emphasize, BOTH those above thresholds must be met ... $20K payments AND 200 transactions.

Very few PayPal users do that much in gross sales and volume in the same year.

onedree- no need to withdraw. It wouldn't help anyways in regards to the reporting requirements.

In the fine-print, all PayPal payments for goods and services, both on and off eBay, count, including, if my understanding is correct, even those payments later refunded / credited back. As for personal payments, those supposedly aren't counted towards the thresholds, but it may be PayPal's discretion in edge cases.

Ron

I thought thier email said either or. In any case anyone who does not report their paypal earnings to the IRS is asking for trouble anyway. People who do not pay taxes have a unfair advantage over people who do.

Nice home decor. I'm sure your grandkids get a real hoot outta that ram.

if its over 20 k or 200 transactions, paypal will automaticaly ask you..

It's not OR, it's AND ...

"Applies to sellers receiving over $20,000 in gross payment volume AND over 200 payments"

https://cms.paypal.com/us/cgi-bin/ma...ng_us/IRS6050W

When reading the first section "What is Internal Revenue Code (IRC) Section 6050W?" note the word both ... some people see the thresholds bullet points and assume each are separate - no, both thresholds must be met ... $20K AND 200 transactions.

Ron