New Paypal Policy.

Mintstate

Received this email from Paypal. I have a feeling it isn't going to be too popular.

"Effective May 2004, PayPal will require U.S. Premier and Business users who receive more than $2,000.00 USD a month in payment volume through PayPal over three consecutive months to provide supplemental information about their businesses including business categorization, sales venue and business URL information."

baccaruda

Here comes the Taxman.

baccaruda

Man, I remember when Paypal was a cute little free service. Now they've declared themselves Der Fuhrer.

topstuf

Gee, everyone jumped down my throat when I dumped the rotten, stinking, lousy service for freezing my $2000 transaction a year or so ago.

Dog97

<<<I have a feeling it isn't going to be too popular.>>>
Doesn't bother me a bit.
Of course the people complaining will be the cheapskate wannabe dealers that don't take credit cards thru PayPal and now they won't be able to cheat on their taxes.
That shouldn't bother legit dealers.

BigD5

I'm with Dog on this one.

Why blame paypal?

If you are bringing in income via coin sales, via Paypal, and aren't reporting that income to uncle sam, this is Paypal's fault?

Russ

This is no different than the type of information required of businesses by regular merchant services providers. Face it, if you're consistently processing $2000 a month in transactions, you are a business.

Oh, and the assumption that it has to do with PayPal reporting anything to the IRS is a big stretch. It's nothing more than a fraud protection measure. Anybody who's ever set up a merchant account for processing credit cards has provided a lot more information than PayPal is asking for.

Russ, NCNE

bearcave

I just hope I can do $2000 a month. I would be glad to furnish this!

maxB3535

Notice that they aren't asking for any identifiers such as FEIN or SSN numbers. I am assuming that will come later.

BAJJERFAN

Well IMO when/if PayPal and eBay start voluntarily making it easier for the taxman to get involved then they will lose customers bigtime and ALL that they will have left will be the businessmen; which is maybe what they want anyway.

topstuf

I would guess that PayPal now falls under the new "financial institution" rules set in motion ostensibly to combat ......TeRRorIsm !!! whooooo......

The rules also apply to coin dealers and pawn shops.

Expect a Paypal 1099 next year.

Russ

<< <i>Expect a Paypal 1099 next year. >>



Why would PayPal send a 1099? No other merchant processing service does. A 1099 is for income, not for expense.

Russ, NCNE

topstuf

Wait til they ask for a photocopy of your driver's license too.....like they did me. AND the letter from my bank MANAGER.

AND.....I was a completely clean dealer.

One of the two rarest items I had as a dealer was a: "Recommend accepted as filed" letter as a result of two ......complete audits...... one from feds ..... one from state. Not many of those around.

You don't have to be crooked to get screwed by Paypal.

ddink

So they are making sellers "play by the rules" (i.e. report taxable income). I'm cool with that.

Now if only THEY themselves would play by the rules, i.e. either get licensed as a bank or stop acting like one without the license.

MSD61

Not to be mean but this has no effect on me. I'll never have $2,000 go through my account at any given time

Bustman

It was always a matter of when, not if. I was hoping it would take a bit longer.

GAT

Simple solution...............dump Paypal.

Bustman

Too many buyers like to use pay pal. For two reasons; it give them a sense of security... and gives them a chance to pay off larger purchases on their credit cards.
I believe if I dumped pay pal my auctions would not do as well.