Paypal asking for social/tax id

[kikcaffine]

Anyone else get this when they log into their paypal? They want either a social security # or they want a tax ID number. Apparently its if you move 20k and 200 transactions.

 

[JeremyH]

Nope.

 

[BUBBA069]

https://cms.paypal.com/us/cgi-bin/marketingweb?cmd=_render-content&content_ID=marketing_us/IRS6050W

PayPal will track the payment volume of your account(s) to check whether your payment volume goes above both of these levels in a calendar year:

- $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

Before your payment volume exceeds the reporting thresholds, you’ll be asked to add your tax ID number, such as a Social Security Number (SSN) or Employer Identification Number (EIN), to your existing account(s), if you don’t already have one on file.

If you cross the IRS thresholds in 2012, PayPal will send Form 1099-K to you and the IRS for the 2012 tax year in early 2013.

 

[JavelinSST390]

Yup, you are now, as far as Paypal and the Government is concerned, a self-employed small-business owner. Be prepared, as if that 1099 form makes it to the IRS, you're gonna get whacked for $7000 in self-employment tax come April of next year. Plus you may get pounded for sales tax if any of those transactions were in your state.

Welcome to beauractratic red-tape BS. If I were you I would stop using Paypal till the first of the year and avoid the nightmare, as it could open a whole can of worms.

Good luck! "thumbsup"

 

[bob1961]

if you did go over that 20g/200 then you should have what money you need to pay what taxes you OWE the man, if you played it smart and banked what % you should have known you might need to pay in taxes and other fees "thumbsup" ....only thing i see where you are up shits creek is not having that lil ol tax id # or any kind a being registered to have one, good luck on your path you have taken......bob

....

 

[losikid]

Yep...If i was you, stop using paypal till the jan 1st

 

[Duuuuuuuude]

Oh that's it. I'm going back to personal checks and money orders. :x