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 Replies: 17 / Views: 7,829 |
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Valued Member
United States
187 Posts |
 too much corp/gov cooperation for my liking At least we have till 2011 Hi, I'm Ken Swab, senior federal government relations officer at PayPal. You might have heard that Congress recently passed the Housing and Economic Recovery Act of 2008, a major housing bill that the President signed into law on July 30. The bill contains a provision impacting PayPal and our merchant customers, so I wanted to explain the requirements and what they mean for some of you. Under the legislation, PayPal will be required to report to the IRS the total payment volume received by PayPal customers in the U.S. who: receive more than $20,000 in payment volume in a single year; and receive more than 200 payments in a single year. This legislation applies to all payment providers including PayPal and takes effect in 2011, so the first reports will go to the IRS in January 2012. Our goal when the legislation takes effect is to make it easy for PayPal merchants who fall under the provision to report their taxable incomes. I want to emphasize that this new law affects a small percentage of PayPal customers. Early versions of the legislation would have required PayPal to report total payment volume of many more customers, including those who received as little as $600 per year. We worked hard to educate Congress about the unique features of PayPal and the unique nature of our customer base. We also educated lawmakers about the many PayPal customers who receive money from others for reasons not related to operating a business. It was important that this legislation didn't burden entrepreneurs with new tax compliance demands or inappropriately raise reporting requirements on those who are not merchants. With help from many of you, we conveyed these views to congressional leaders. And as a result of that dialogue, the legislation doesn't overreach or negatively impact individual Internet users, the growth of small businesses, or the entrepreneurial spirit that makes the Internet so powerful. Thank you, to the many PayPal and ebay customers who took the time to write to your U.S. Senators about this legislation. Your voices encouraged Congress to reject the initial overly-burdensome proposal and to limit the impact of the final version of this bill. UPDATE (8/18/08): Thanks for all of your great questions! I have been responding to as many of them as I can. However, because the legislation has just recently been passed and we do not know exactly how the IRS will implement the requirements, we do not yet know the answers to some of the questions that have been posed. Rest assured that as more details about the requirements of this law become available, will provide updates as necessary. In response to some of the questions below about business expenses (such as shipping, insurance, etc.), it is very important to point out that the figure PayPal will report to the IRS is only the total payment volume received by your business. Because of business expenses and other reasons, this figure may not match the yearly revenue or income figures that you report to the IRS in your tax forms. We encourage all of you to consult with your tax advisor when this law takes effect to ensure that you are complying with federal tax laws.
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Pillar of the Community
United States
1429 Posts |
Get ready for goverment intervention on all fronts. I guess as they say (people) get what they deserve (or asked for).
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Pillar of the Community
United States
532 Posts |
Death and taxes.... What has changed? Well.. except now it is harder to lie about your taxes. To everyone playing by the rules nothing has changed. I think the guy's self proclaimed title is hilarious. Poor guy wasn't hugged enough or something. Everyone else in the world calls people in this role secretaries. Quote:
"I'm Ken Swab, senior federal government relations officer at PayPal"
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Pillar of the Community
United States
2335 Posts |
Quote:
What has changed? Well.. except now it is harder to lie about your taxes. To everyone playing by the rules nothing has changed.  |
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Moderator
 United States
188052 Posts |
Another example of inefficient government regulation. I can already think of several ways to get around this; you know that the tax cheaters have thought about it as well. Those that do not play by the rules will continue to find ways to avoid paying.
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Forum Dad
United States
24153 Posts |
Yes, but the more trouble they make it, the easier it is to prosecute. It's a whole lot harder to claim ignorance when you jumped through 9 hoops to avoid, than when you jumped through only one or two.  |
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Moderator
United States
188052 Posts |
Logically, I have to agree.  But there is (in my opinion) a better (i.e. more efficient) solution that best left argued discussed on a political forum.  |
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Valued Member
United States
314 Posts |
When did you receive this message? I have paypal but haven't seen this message yet?
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Pillar of the Community
United States
1571 Posts |
I ask the same question: when did this come out? How accurate is the info given? Is it worth p[utting a link to CCF, this thread from other forums> If "legit", it would interest a whole lot more folks, than the few here.
Dick
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Pillar of the Community
United States
1840 Posts |
This legislation, if true, seems like a logical step considering the current economic climate. Effectively taxing Internet transactions has been in the offing for some time. I'm sure both State and Federal governments lose a lot of revenue through these sales.
Frankly, I think it is a good idea. I have to pay taxes on my income and certainly don't meet the minimal requirements for reporting.
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Pillar of the Community
United States
5606 Posts |
If we all think about it I am sure most of us know people who have well over 1000 transactions, if you think harder I believe we also know people who have over 10,000 transactions, that said, don't you think it is fair these people report the thousands of transactions equating to 10's of thousands of dollars, if not more.
I like others do not enjoy paying tax on everything we do from special use taxes to a traffic ticket has for a while now a surcharge on top of the fine, why, because we as a group have not stopped this out of control bad habit, even a tax on home remodeling, I do believe that somewhere in the middle there is a solution that is fair for all. I for one believe we need another Boston Tea Party,I have been wondering for years why this has not already occurred, dress up as Native Americans (no disrespect just following tradition) and revolt, taxation without representation, only this time lets do it in New York Harbor and I hope some of the ears in Washington will listen and put an end to a tax on everything from clothes to toilet paper.........
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Pillar of the Community
United States
2602 Posts |
Wow, this is just unbelievable. And by 2011, the paypal and ebay fees will probably have climbed again. This will probably wipe out small potatoes operations that have slim margins already. So much for stimulating small businesses! |
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Pillar of the Community
United States
2602 Posts |
Oh, and what if you have lost money on the ebay transaction already from not having a high enough final bid and you lost money from fees and shipping, all that PayPal will show is the total amount sent to you. It will be a mess having to break down every single transaction- some you make money some you lose money. Will they tax you for the money sent to you on transactions you've lost money on? |
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Pillar of the Community
Canada
1082 Posts |
It's going to force people to keep meticulous records of all transactions, declaring their profits and also their losses. Fees and shipping will become legitimate deductions.
If you're not officially a dealer now, you will be.
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Rest in Peace
United States
2668 Posts |
Yes, WE MUST enforce all tax collection! [/sarcasm] The IRS is destroying American wealth faster than any other period in history. It is also destroying Americans*. Taxes go down a rat hole now, Personal wealth generates income and gets put back in circulation. I prefer stimulating the economy over stimulating the financial markets. Taxes make sense. So do tea parties. *This is going to become more prevalent in the next year or so: Quote:Two Suicides Shake the World of Wealth
By Robert Frank
http://blogs.wsj.com/wealth/2009/09...d-of-wealth/They were both Harvard men. They were both well-liked fixtures in the old-money worlds of New York and New England. And they both took their own lives the same way in the same week-with a single gun shot.  Finn M.W. CaspersenFinn M.W. Caspersen, the heir and former chief of the Beneficial Corp., the consumer-finance company, committed suicide on Labor Day on the grounds of the Shelter Harbor Golf Club in Westerly, R.I., the beach community where he had a summer home.  Jim McDonaldJim McDonald, the CEO of Rockefeller & Co., which manages investments for the Rockefellers and other families, committed suicide on Sunday in his car behind an auto dealership in Dartmouth, Mass. Mr. Caspersen was battling kidney cancer. But an article in The New York Times today says he also was battling an IRS tax investigation. According to the article, authorities asserted he might have owed as much as $100 million in back taxes and fines or, possibly, even have faced prison as a result of an investigation into offshore bank accounts.The IRS learned that Mr. Caspersen held an account at LGT, the private bank controlled with Liechtenstein's royal family, according to the Times. The Caspersen family declined to comment on the Times piece, which said trusts held by Mr. Caspersen's sons have also been frozen. Mr. McDonald's death, according to friends and associates, had little or nothing to do with business. They say he suffered from chronic depression, even though he performed well as his job. It may well have had nothing to do with money or the crisis. Yet the two high-profile suicides-coming after so many others during the global financial crisis--show that even the most stable and high-status of lives can be more fragile than they appear. Let me add, my sister shot herself, years ago, due to extreme harassment from the IRS. Although she fit the classic description of a battered spouse the IRS refused to accept her claim of coersion and assault. It can happen to the rich guys and it can happen to YOU. Oh, you obey the law? Until it's changed. After the fact. We're not in Kansas anymore. |
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Pillar of the Community
United States
1409 Posts |
I don't do enough paypalling to be affected by this, but am a firm supporter of a "Fair Tax" where we are only taxed on consumption. If that were the case, then the paypal deal would be fine by me.
But alas - we will go the other direction and continue to move towards a VAT, because afterall, its so successful in Europe. Not.
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Replies: 17 / Views: 7,829 |
Posted 08/31/2009 9:17 pm
