Paypal wants a pic of my SS or Tax documents?

[abidtsteele]

Originally Posted by stepsahead7

Custodian to what ??? Paypal has NO legal right to freeze anybody's funds....they are a payment facilitator, they are not EBAY or AMAZON. I personally don't care because I don't do 200 transactions or whatever, but that's like saying my credit card company can freeze my credit access because of the IRS.

Someone that doesn't understand the law probably shouldn't be making claims about what is or is not legal. They can do it on their own as part of their terms of service (at least temporarily)

If the IRS requests it under a tax court order then they HAVE to do it (that also applied to your CCs). That is part of the IRS's collection power.

[asujbl]

Originally Posted by stepsahead7

Custodian to what ??? Paypal has NO legal right to freeze anybody's funds....they are a payment facilitator, they are not EBAY or AMAZON. I personally don't care because I don't do 200 transactions or whatever, but that's like saying my credit card company can freeze my credit access because of the IRS.

#wrong

[asujbl]

Originally Posted by glen87

even under the transaction / dollar threshold, states can request info from PP. so you still should be reporting, even if you are under the threshold.

#right

[Stifle]

Originally Posted by Longshot18

Not sure, but could be your comments are in reference to my comment about IRS coming after funds. If, when it's followed by a monopoly comment, the sarcasm was already not obvious, let me make it clear- my comment was sarcastic.

My goal of the original post was not to scam or blame anyone, but to find information out and just make sure it was a normal paypal process that I was not aware of.

How many blowout members sell and then go and utilize those funds just like a business to increase their collection or inventory to trade or sell in the future. Isn't that what keeps money flowing and isn't that why so many famous people who are called out for not paying taxes know what the simple loopholes are in having a business. That is what makes having a hobby almost outdated, it's sad that we spend money at shows, card shops and stores to have cards to sell on line. It's a cycle of keeping the hobby alive. We help the Gas stations, shipping companies, etc.

[CastleBeachCards]

is the 200 transactions only for recieving payment, or it is for buying things as well?

Originally Posted by ninjacookies

Paypal is cracking down hard on tax evasion and fake accounts.

This is becoming mandatory for any account doing 200 transactions or $20k in transactions a year (or on pace to be).

No way around it. You don't send in matching documents that they ask for and they'll freeze your funds for 180days, ban you from paypal permanently, and you most likely won't be able to withdraw it after that period.

[Tnooky]

People get this wrong all the time, it’s 200 transactions AND 20k in transactions in a year that will trigger a 1099k, not one or the other. If you have 80k in transactions in a year but only 100 total transactions you will not get a 1099k.

[ninjacookies]

Originally Posted by Tnooky

People get this wrong all the time, it’s 200 transactions AND 20k in transactions in a year that will trigger a 1099k, not one or the other. If you have 80k in transactions in a year but only 100 total transactions you will not get a 1099k.

That's what the official rule states, but trust me, Paypal definitely looks at either or and will hit you if either (even just transaction #) comes close to the limit. There are countless of people with medium volume low dollar transactions getting hit with this. This is mainly due to people (mainly scammers) with multiple stealth accounts with fake info trying to launder money between accounts.

Just because they ask for tax information documents doesn't mean they're going to send you the 1099. It just means they want to verify that the account owner really is who it is and not a bogus entity.

[Tnooky]

Originally Posted by ninjacookies

That's what the official rule states, but trust me, Paypal definitely looks at either or and will hit you if either (even just transaction #) comes close to the limit. There are countless of people with medium volume low dollar transactions getting hit with this. This is mainly due to people (mainly scammers) with multiple stealth accounts with fake info trying to launder money between accounts.

Just because they ask for tax information documents doesn't mean they're going to send you the 1099. It just means they want to verify that the account owner really is who it is and not a bogus entity.

I understand that, I tried to respond to someone else’s comment but I guess it didn’t. Also, I’ve heard that PayPal has started doing it without people even coming close to the limit recently.

[ninjacookies]

Originally Posted by Tnooky

I understand that, I tried to respond to someone else’s comment but I guess it didn’t. Also, I’ve heard that PayPal has started doing it without people even coming close to the limit recently.

No doubt. They're getting super strict recently. Going to be interesting how things go once they're phased out of the equation and Ebay migrates to the new payment platform.

[minnesotachill]

A refunded payment will also count as a Payment Received Transaction

[glen87]

Originally Posted by Tnooky

I understand that, I tried to respond to someone else’s comment but I guess it didn’t. Also, I’ve heard that PayPal has started doing it without people even coming close to the limit recently.

there are some states (vermont is one) who will ask for it regardless of how close you are to thresh hold.

this is (again) why you should be reporting yourself

[Stifle]

Originally Posted by glen87

there are some states (vermont is one) who will ask for it regardless of how close you are to thresh hold.

this is (again) why you should be reporting yourself

Therefore if you keep receipts of miles driven, Shipping cost's, prices paid for cards, packs, boxes and cases, hotel stays, food, supplies as a business would do. Are EBay / Blowout members then able to for 3 consecutive years but not a 4th have write off losses as I believe is possible for businesses. Would this be beneficial for States and our country to take advantage of what I believe is available?