Paypal wants your tax ID

Coinsponge

Is Paypal now plugging directly into the IRS or is this a security issue?

blu62vette

They have been asking for a long time.

Coinsponge

Looks like they are not asking now. They are telling.

derryb

under certain circumstances they are now required to report incoming account money to the IRS, effective for 2011 tax year. Those affected will receive a copy of the 1099 (income) for last year. IRS receives same 1099 information. Anyone getting a 1099 from paypal and not reporting the income on your tax return should seriously reconsider.

Coinsponge

I wonder if this will hurt ebay. Face it, some people are pretty concerned about privacy issues when it comes to the government even if they are on the up and up.

OnlyGoldIsMoney

<< <i>I wonder if this will hurt ebay. Face it, some people are pretty concerned about privacy issues when it comes to the government even if they are on the up and up. >>




The answer is yes. People will move on to other venues. I have.

PerryHall

<< <i>I wonder if this will hurt ebay. Face it, some people are pretty concerned about privacy issues when it comes to the government even if they are on the up and up. >>



Yes, it will hurt eBay and they will lose a few customers but it wasn't their idea so don't bame them.

Coinsponge

I think currently there is a threshold of sales to trigger a 1099. I wonder if they are setting things up to issue 1099's on dollar-one like brokerage houses do.

airplanenut

Every other financial institution gets it. And they're reporting to the IRS? Boo hoo. I feel soooo bad for those who now can't cheat on their taxes. And for those who don't cheat, then this is a non-issue.

BillJones

<< <i>Is Paypal now plugging directly into the IRS or is this a security issue? >>



They will get my tax ID when pigs and donkeys fly. Who do they think they are, and do they think that that many people are that stupid?

BillJones

<< <i>Every other financial institution gets it. And they're reporting to the IRS? Boo hoo. I feel soooo bad for those who now can't cheat on their taxes. And for those who don't cheat, then this is a non-issue. >>



It's bad enough when you have to give these numbers to banks and doctors. I don't trust or like Pay Pal one bit. It's got nothing to do with tax evasion on my account and everything to do with security issues.

LindeDad

My Tax preparer knew how to handle it with ease.

Coinsponge

<< <i>Every other financial institution gets it. And they're reporting to the IRS? Boo hoo. I feel soooo bad for those who now can't cheat on their taxes. And for those who don't cheat, then this is a non-issue. >>




If I recall correctly, in the Bible, in the old days in Israel, God told them that they had to leave the edges of their crop fields for the needy to get food. It would seem the government is demanding the edges be harvested too.

PerryHall

<< <i>I think currently there is a threshold of sales to trigger a 1099. I wonder if they are setting things up to issue 1099's on dollar-one like brokerage houses do. >>



If there is a dollar threshold for reporting, what is there to prevent multiple accounts to stay below this threshold?

LindeDad

<< <i>

<< <i>I think currently there is a threshold of sales to trigger a 1099. I wonder if they are setting things up to issue 1099's on dollar-one like brokerage houses do. >>



If there is a dollar threshold for reporting, what is there to prevent multiple accounts to stay below this threshold? >>



You have to give the info required to tie them together to get the accounts.

PerryHall

<< <i>Every other financial institution gets it. And they're reporting to the IRS? Boo hoo. I feel soooo bad for those who now can't cheat on their taxes. And for those who don't cheat, then this is a non-issue. >>



People aren't concerned with paying their taxes---they're concerned with giving out their personal information to e-Bay. Ever hear of identity theft?

LanceNewmanOCC

<< <i>I think currently there is a threshold of sales to trigger a 1099. I wonder if they are setting things up to issue 1099's on dollar-one like brokerage houses do. >>



i think i was told $20k in a year in sales or 200 transactions

gave them everything but my shoe size and i sleep well at night and never gave it a second thought

received my 1099 quite early this year
.

19Lyds

The problem with PayPal and this 1099 business is that they are only reporting on dollars you "receive", not on what you spent.

I received my 1099 and I don;t particularly care for it.

While were at it, how many folks are pissed at eBay for charging Final Value Fee's on your shipping costs? Knida makes me want to charge a flat $10 for everything.

oldhobo

It's greater than $20,000 and 200 transactions.

We’ll use your Social Security Number to send tax Form 1099-K to you and the IRS if the payments you receive in a calendar year go above both of these levels:

•$20,000 USD in gross payment volume for goods or services
•200 payments for goods or services

JamesMurray

<< <i>

<< <i>Every other financial institution gets it. And they're reporting to the IRS? Boo hoo. I feel soooo bad for those who now can't cheat on their taxes. And for those who don't cheat, then this is a non-issue. >>



People aren't concerned with paying their taxes---they're concerned with giving out their personal information to e-Bay. Ever hear of identity theft? >>

Broadstruck

<< <i>People aren't concerned with paying their taxes---they're concerned with giving out their personal information to e-Bay. Ever hear of identity theft? >>





Last week I needed to speak to EBay customer service and I had to type in my last 4 digits of my SS#.

My call was buyer protection related and I was transferred to PayPal and again for identification the last 4 digits of my SS#.

Neither customer service representative spoke proper English.... Does anyone know if EBay and Paypal recently outsourced overseas

seateddime

First there was Yahoo then came Google

First there was Myspace and then came Facebook,

just like Tom lost a lot of friends to Mark,

First there was Ebay then there was ________

JamesMurray

<< <i>First there was Yahoo then came Google

First there was Myspace and then came Facebook,

just like Tom lost a lot of friends to Mark,

First there was Ebay then there was ________ >>



We've been hearing this for at least the last 5 years and probably more. Until someone steps up to the plate it's not happening. On the other hand i did stumble on a website in production and it looks huge , it was like wandering alone in empty but well lit corridors.

new sellers site maybe?

DoubleEagle59

In Canada, we don't even have to fill out a form.

Any and all Canadian Ebay sellers over $20,000 in annual sales gets their info sent directly to the CRA (Canadian Revenue Agency).

And if you sell over $30,000, then you are required to charge HST at 13% (Harmonized Sales Tax).

Fun, isn't it??

jdimmick

If your going to sell on ebay anything substantially, you best be prepaid to pay your fair share, i know I have.

we had such a good year last year , I have had to pay more out to the IRS that I had ever made working a real job.

I hate when people try and dodge the system, and the others (the ones who file correctly) bear the brunt.

yellowkid

And if you sell over $30,000, then you are required to charge HST at 13% (Harmonized Sales Tax).

"Harmonized," kinda makes you feel warm all over.....

atarian

<< <i>Every other financial institution gets it. And they're reporting to the IRS? Boo hoo. I feel soooo bad for those who now can't cheat on their taxes. And for those who don't cheat, then this is a non-issue. >>



How about those who DONT cheat on their taxes but dont like these places asking for info as fear it might go into the wrong hands and like paypal and ebay havent ever screwed up before. I can see them saying you made lets say 35,000 when you really made 26,000 or 23,000. You put down your income from your online sales and if paypal is saying you made 12,000 more and you document all your sales ( im sure you would win ) but really if your not comfortable with them reporting your not comfortable. I dont think all those againist this would be cheating ( you never said all are ) but do you feel 100% confident they will report things correctly to the govt for the 1099? I for one think they will screw it up for some big sellers and that might cause un needed audits that will be more a hassle than its worth. Simple answer is go elsewhere to sell, but do you feel like sitting around and trying to prove that paypal messed up?

airplanenut

<< <i>but do you feel 100% confident they will report things correctly to the govt for the 1099? >>

Yes. I got my 1099 last year, and by golly, it reported the same amount of money received as I had. All that was left for me was to report expenses, and voila... profit.

GrumpyEd

Is it true that you need to reach BOTH of these before you get a 1099?
I think I read the rule and it did say both.



<< <i>
•$20,000 USD in gross payment volume for goods or services
•200 payments for goods or services
>>



The reason that seems strange is:
A seller can sell 199 items for $10,000 each (199 payments and $1,990,000) and not get a 1099.
Then another seller sells 200 items for $100 each (200 payments and $20,000) and gets a 1099.

I assume a seller taking in almost 2 million would be reporting it on taxes but I don't see why they didn't make the rule based on only a dollar amount instead of adding the 200 payments into the rule.

TwoSides2aCoin

Edited for political correctness

rmpsrpms

<< <i>I assume a seller taking in almost 2 million would be reporting it on taxes but I don't see why they didn't make the rule based on only a dollar amount instead of adding the 200 payments into the rule. >>



They do it so that you can sell a few big ticket items and not have to report. Let's say you sold a used car on eBay Motors for $30k. Would it make sense for that sale to be reported as income to the IRS? Actually it would to the IRS but how many folks would report a car sale as income. If you sell 200 items for average $100 over a year, that sounds like a business and the theory is it should be taxed as such. Sell 5 items at average $4k each...no need to report. Makes sense to me.

derryb

Any financial institution that processes your money, including credit card companies, is going to require a tax ID number so that they can comply with IRS reporting requirements. The change was brought about because the IRS realized that too many individuals could no longer be trusted to comply with tax reporting requirements.

mrpotatoheadd

<< <i>Let's say you sold a used car on eBay Motors for $30k. Would it make sense for that sale to be reported as income to the IRS? >>

I imagine it would depend on how much you paid for the car.

Spooly

E-bay has limited my account, payment held for 21 days and you can only get a check for $500 per month, unless I give them my checking account number or SS number. I say no to both! Glad I don't do a lot of business on E-bay.

TwoSides2aCoin

1099s actually make reporting a lot easier. It's the tax code which is complex, not reporting income.

19Lyds

Hmmmm.

Does Teletrade issue 1099's?

How about that BIG TICKET Auction House, Heritage. Do they Issue 1099's?

Stacks? Bowers and Merena?

Some of the individual stuff sold on the above venue's (except Teletrade) sell for twice what my paultry PayPal payments amount to.

Just curious.

rmpsrpms

<< <i>

<< <i>Let's say you sold a used car on eBay Motors for $30k. Would it make sense for that sale to be reported as income to the IRS? >>

I imagine it would depend on how much you paid for the car. >>



I suppose I should have said "would it always make sense for that sale to be reported as income to the IRS?"

notwilight

The 1099 on coin sales will just make it easier for me to do my taxes.

I opened a new paypal account to sell garage sale junk--trying to clean out the house--old motorcycle gear, childrens toys, golf clubs, etc. I hope that doesn't get lumped into the 1099. Of couse those things are all being sold at a loss. but if I tried to write off that loss, it would be disallowed. So if they get included, it may take some effort to remove them. --Jerry

jdimmick

Thats why i dont sell anything on e-bay other than what is related to the coin biz.

If I had other house hold stuff or personal stuff to sell, I would use a seperate account to sell that , that way it could be differentiated from business activity.

jim

jdimmick

Here is what is intresting for those that are unaware:

right now, on the tax form, there is a line that is intended for electronic payments systems such as paypal reporting, and credit card machine processing payment reporting, but is not required to be used on the 2011 forms(yes, you are required to report it, but not itemized seperately. ( in 2012 it will be.)

Here is two issues I see for myself for next year, when folks come into the shop too pay for say grading fee's, and use a CC, that is re-imbursement funds, not incoming income. It will be reflected on the 1099 , but in actuality it will not be sales $. ON pay-pall , refunds are not deducted from the 1099 form that is issued which shows amount of $ being recieved monthly, coming in from paypal.

there are a few other issues that will arise, that will have to be addressed by having you documentation in order to justify what is an disnt incoming funds.

coinman23885

I'm glad that I don't sell that much on eBay. Ensuring that the 1099 is accurate sounds like a pain.

RGJohn

<< <i>Is Paypal now plugging directly into the IRS or is this a security issue? >>



PP is a privately owned company. The IRS already knows who you are.
Why not just post your info on your Facebook page and cut out the middleman?