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|07-25-2012, 11:29 PM||#1 (permalink)|
I like Guns and Cigars.
Join Date: Jul 2008
New Paypal/IRS requirements
I got this email from Paypal tonight:
We're asking for your tax ID number due to new IRS rules. Your tax ID
number is one of these:
- Your Social Security number
- Your Individual Tax Identification Number
- Your Employer Identification Number
We'll use your tax ID number to send tax Form 1099-K to you and the IRS
when the payments you receive exceed both of these milestones in a calendar
- $20,000 in gross payment volume for goods or services
- 200 payments for goods or services
We want to help you continue to sell with PayPal and to avoid any
interruption to your account. It's easy — here's how:
1. Log in to your PayPal account.
2. A message will appear asking you to update your information.
3. Click Provide Now.
If you have multiple PayPal accounts, repeat these steps for each account.
We appreciate your help in complying with these IRS rules. For more
information, see our FAQs on the IRS reporting requirements:
This is a big bummer! I have to crunch the numbers, but it could spell the end for my garage sales on MCB.
|07-25-2012, 11:33 PM||#3 (permalink)|
The Attractive Fireman
Eh, you gotta be careful with this kind of stuff. It may be spam, and you don't want to help spammers out any. Usually their good enough as it is, they don't need help from the uninformed target.
|07-25-2012, 11:34 PM||#5 (permalink)|
The Attractive Fireman
Just sayin'. I got an email once from "PayPal" that turned out to not be PayPal. Just giving you a heads up.
|07-25-2012, 11:50 PM||#6 (permalink)|
Join Date: May 2012
Yeah, they started this last year...
You will get a 1099 in the mail along with a statement from paypal that says...
You sold $XX,XXX amount of goods last year...
We have forwarded this informatiom to the IRS, please have your taxes in order to avoid any unnecessary penalties...
Last edited by Endangered Customs; 07-26-2012 at 12:00 AM.
|07-25-2012, 11:52 PM||#7 (permalink)|
Join Date: Oct 2007
Location: A2, Michigan
It's not spam and it's not new. Obviously you don't want to blindly click on the links in the email but you should also get prompted when you login to paypal. I got this quite a while back. Unfortunately they're trying to run a legit business so they have to follow certain IRS guidelines.
What probably triggered it was a decent month of sales putting you in as someone who might reach the limits. You should probably thank them as they let you know ahead of time to keep an eye on your transaction count and dollar amounts. Do note though that it's supposed to be an AND.... (taken off the site) but who knows....
These new rules apply to sellers who receive over $20,000 in gross payment volume AND over 200 separate payments in a calendar year
|07-26-2012, 12:23 AM||#8 (permalink)|
Join Date: Apr 2006
Location: jerzzeeee shore!
i figured this would happen since congress made noises a few years back about ebay sales.
now that ebay owns paypal it was gonna happen soon.
when i was doing large sales, all the bigger payments had to be via money order.
if some of you remember my penchant for MO's it was because of this paypal/IRS eventuality...
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