IRS and PayPal

[Clatterville trolley]

Has anyone else received the message through their PayPal account about a tax ID number to continue to receive funds through them?

Guess they figured out they were missing some taxes that they could collect??

I don't know about anyone else, but I don't have a tax ID number and not sure how to get one either.

[72BBGMC]

If you have more than 200 transactions OR more than $20K go though your Paypal account in a year, the IRS makes Paypal send you a 1099 form. Your SS# is your tax ID number. This has happen to me several times over the years selling on Ebay.

[Clatterville trolley]

I certainly haven't had 20K go through that account or more than 200 transactions so I'm not sure what is going on. The email seemed to be legit, but they can spoof most any of them I guess. Thanks for the information. Jay

[LockDoc]

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I would go to your ebay account and see if the same message is in your Inbox there. If it is it is probably legit. I haven't received a message like that... Yet!

LockDoc

[tchevs]

I would assume that each state has their own rules about selling goods, but IRS is no joke. Like Locdoc said look at your paypal account to make sure its not phony. In reality we all have to report all income, when you sell online, proof is there to show you made some money. If that email is a real deal, make sure you have proof of your losses too, that way you can offset your gains. a written receipt would suffice for that.

[Blazerowner]

Never follow a link from email or even click on it. Go directly to the account and log in. I get a lot of fake emails from someone claiming to be PayPal that look real but nothing in my account. If you are not over the threshold to receive a 1099-K they should not need that information.

[chevmn]

Agree with Blazerowner. I do quite a bit of business on Paypal, and have not see this (yet at least). But, I have seen a lot of fake requests trying to obtain my info, and I am always suspicious. I have always wondered why we pay sales taxes over and over on the same items (used cars, old parts, etc... every time it sells it is taxed). And don't get me going on property taxes (at least in my state/county). But I would look closely at the message, and link, and probably hit the delete button if I even suspected it.

[68bowtie]

Haven’t noticed that email from paypal, but did get a similar thing with ebay recently.

PS I think if you don’t have a business you might just use your social. Blech.

[Clatterville trolley]

I did go directly to my PayPal account and found a message there that said basically the same thing as the email. Also, 68bowtie, not too sure that I want to give them my social security number - heard too many horror stories about identity theft. I'm sure that it is all to easy to get snagged in one of those schemes, and very difficult to get straightened out afterward.
Thanks everyone for the input on this - Jay

[57taskforce]

If you try to use your balance in PayPal rather than transferring to your personal bank/debit account, they won’t let you unless you enter your social. Nope not happening here. I don’t even use PayPal anymore, havent for a while.. They lean very far against my personal beliefs.

[72c20customcamper]

It's the way things are going . Ecommerce is a big deal now so the IRS is making sure people pay their tax if they run a business and accept PayPal and other forms of payment . In most cases the bigger online company's now charge you sales tax for your state. PA even makes you have a tax ID if you sell at swap meets and flea markets . I'm sure other states do to

[weq92f]

.

You can get a legit tax ID by filing the proper forms with your local/fed government to create a new company. But then you'd be required to funnel all company related transactions through the new entity ( bank account, accounts payable, accounts receivable, tax forms quarterly, etc. ).

Any losses come right off your own personal tax return and the CEO can write off all company related purchases!

Unless you're running well over the IRS threshold, none of this makes sense!

-klb

[davischevy]

I have started avoiding PP when possible.

It looks like your bank transactions over $600 may soon be reported to the IRS if the budget bill passes..

[Clatterville trolley]

Anyone know much or have had experience with Vemo or any other of the payment methods available??

[cwcarpenter98]

Venmo is owned by PayPal. Used to be free, but now has a "business" profile that you can create.
There's some fees for being a business profile, but no fees for personal stuff. I use venmo mainly for splitting utility bills with my roommate. I'll pay the bill and he sends me half of it via venmo. It works well for that, but I'm not sure how well it will work for what you're trying to do. Also, more people have PayPal than Venmo since PayPal was designed for this kinda stuff where Venmo was designed to be able to send money to friends and family without charge. People started using Venmo for business to get around PayPal's fees so Venmo started charging fees this year too

[Clatterville trolley]

Didn't know PayPal owned Vemo.

[57taskforce]

I know i can send money thru zelle via my credit unions’ app but I’ve never used it.

[Chevyland]

Originally Posted by davischevy

I have started avoiding PP when possible.

It looks like your bank transactions over $600 may soon be reported to the IRS if the budget bill passes..

They want to track everything
A couple weeks ago I went to withdraw a few thousand from my bank account
The teller asked me ‘what is it for’ ?
I was dumbfounded and got a little testy
She apologized, and said, they now have to ask
My standard answer, now is

‘It’s for my wife’

[davischevy]

Originally Posted by Chevyland

They want to track everything
A couple weeks ago I went to withdraw a few thousand from my bank account
The teller asked me ‘what is it for’ ?
I was dumbfounded and got a little testy
She apologized, and said, they now have to ask
My standard answer, now is

‘It’s for my wife’

My account asked "what is this check for extreme bend hooks"?
Me, "I bought them from a guy in California for my work truck."
Accountant, "What is this check you deposited from E**c Ny**rg"
Me, "I sold him my personal truck".
Accountant "What is this check to J** R******"?
Me, "That's my new company truck. I needed it for the tow hooks."
She didn't get the joke, she just put them under depreciated expense.

[57taskforce]

Originally Posted by Chevyland

They want to track everything
A couple weeks ago I went to withdraw a few thousand from my bank account
The teller asked me ‘what is it for’ ?
I was dumbfounded and got a little testy
She apologized, and said, they now have to ask
My standard answer, now is

‘It’s for my wife’

You know, about a month ago I put $3500 I got from a vehicle sale in the bank so I could shift some of it over toward the little balance left on my Camaro, and some into a savings account. (Normally like most here I have a feeling, I don’t deposit much of the money I make from selling parts or vehicles into the bank) When I made the deposit the teller asked where I had gotten that large a sum of money. That Caught me off guard as well. I just said that’s not important. She didn’t really push me any further. I never really thought about them maybe being required to ask, I just figured she was being Nosey. “My wife” is a great response!

[Low Elco]

My eyebrows went up when I started to have to sign a paper when paying my CC bill in cash in person. "Something we have to do" Uh-huh.

[72c20customcamper]

Originally Posted by Chevyland

They want to track everything
A couple weeks ago I went to withdraw a few thousand from my bank account
The teller asked me ‘what is it for’ ?
I was dumbfounded and got a little testy
She apologized, and said, they now have to ask
My standard answer, now is

‘It’s for my wife’

Mine would be

"hookers and coke ."

[weq92f]

Originally Posted by Chevyland

They want to track everything
A couple weeks ago I went to withdraw a few thousand from my bank account
The teller asked me ‘what is it for’ ?
I was dumbfounded and got a little testy
She apologized, and said, they now have to ask
My standard answer, now is

‘It’s for my wife’

You'll find this phrase written on all US notes ( cash ):

"This note is legal tender for all debts, public and private."

Armed with that I would inform the teller that use of my funds is private and therefore none of her business ( not the banks business either )!

-klb

[LockDoc]

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If it's a large sum of money tell them it's for your ex-wife and give them her name, maybe the IRS will go after her for not reporting it as income...

LockDoc

[FleetsidePaul]

Originally Posted by LockDoc

-
If it's a large sum of money tell them it's for your ex-wife and give them her name, maybe the IRS will go after her for not reporting it as income...

LockDoc

Don't give me any ideas Leon.