Paypal Tax ID information

BigMK

Hello,
I received a notification from paypal this week asking me to submit tax ID information (SS number or Individual tad id number). I've been using paypal for years now, and was never asked to give this information before. I thought this was only required if you have sales for goods and services for more than 20,000 or 200 payments received in a single calendar year. I am far below 20,000 in sales and less than 200 payments received. Am I ok to continue selling as long as I keep my payments received total to under 200. Has anyone else received this notification from them?

Mike

JWBlue

It could be spam trying to obtain people's private information.

A lot of times the thieves will create e-mails that look like it is from PayPal.

The link to click on will go to a website evens looks like PayPal but is not. Sometimes the web address can be looked at and it can be seen it is not a PayPal website.

BigMK

I also receive the same notification when I log into my paypal account, so it is not spam. My guess is that this notification was sent to me because I have reached a certain number of payments received. Although I am under 200, maybe I hit a trigger mark that sends out the notification.

ndleo

They do this sweep towards the end of the year. Eventually they will stop you for receiving any more funds.

flcardtrader

Could be a Paypal records requirement giving them the information they need to auto-gen the necessary tax information for those > $20k in revenue or number of transactions.

packCollector

I believe the 1099 requirement is 200 transactions AND 20k in sales. you must be receiving it for some other reason

mesapsa

I will be dammed if I give PayPal my ssn!!

BigMK

Did a bit more research. Board member (PackCollector) is correct, the requirement is 20,000 in sales AND 200 payments received in a single calendar year. Apparently, paypal sends this notification out based on trends in their payments received history. If there is any chance they will exceed this threshold, the notification is sent out and you must submit the information or they can limit your account where you will not be able to accept payments. Funny thing, I am not even close to $20,000. I am a small time seller and have less than $5,000 in sales this year. Although I have been selling a bit more of late, in no way would I exceed the limit. A question was raised on the paypal community forum where if you make it till the end of the year and have not exceeded the threshold, would the hold on your account be lifted. The answer is no, regardless if you exceed the limits or not, you have to submit your tax id information once you receive this notification. I will close out my account and find another means to sell before I submit my information. I could understand if I was close to reaching this limit, but I am nowhere close.

If your interested in reading more, this topic was discussed on the paypal community forum. Link below:

https://www.paypal-community.com/t5/Fraud-phishing-and-spoof-Archive/requesting-Tax-id-number-for-IRS/td-p/328232

bziddy

They've been asking me for a while. I've never hit 20k/200 so they don't have it yet. I'd guess that if you hit 20k/200 and they don't have it, they would put some sort of administrative lock on your account until they did. Until you hit 20k/200, they don't need it.

Manofmoe

<< <i>They've been asking me for a while. I've never hit 20k/200 so they don't have it yet. I'd guess that if you hit 20k/200 and they don't have it, they would put some sort of administrative lock on your account until they did. Until you hit 20k/200, they don't need it. >>



You would think that they would wait until you surpass both limits to lock your account but that isn't always the case. Even though I've never been anywhere near $20,000 in sales for a year I had my account locked last year after ignoring the threats for a month or two. Even after going nearly a year without being able to take in any money that account still hasn't been unlocked as it still says waiting for my tax id.

JMDVM

I put them off for 2 years, before they locked my account from receiving money. Same happened to my friend. Arguing with them got us nowhere, they disregard the 200/20K rule. PM me and I'll tell you how we got around it.