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 Replies: 25 / Views: 6,076 |
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Pillar of the Community
United States
570 Posts |
Last week I got an email from PayPal asking for my Tax ID number or SSN because of new IRS regulations. Under the new regulations, I thought it says you need to have more than $20,000 in gross sales and more that 200 transactions. I just reached the 200+ transactions, but I am nowhere near $20k in gross sales. I got another email today saying the same thing and they have a banner posted when I log into PayPal saying the same thing. I am only at around $5k in gross sales (yes gross, not net) and most of the stuff I have sold has only been in the dollar range with the exception of a few big ticket items. Anyone else getting this?
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Pillar of the Community
United States
564 Posts |
I haven't gotten anything like that from them.
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Pillar of the Community
United States
3540 Posts |
Uncle Sam will be sending on 1099's this year for the 200/20K sellers. There is going to be quite a few surprised people out there.
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Pillar of the Community
 United States
570 Posts |
Yeah, but you have to meet both 200 transactions AND 20k in sales. I am nowhere near 20k. I'm just over 200 transactions.
Edited by mmorgan22
10/03/2011 9:37 pm
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Moderator
 United States
16677 Posts |
Quote:
Last week I got an email from PayPal asking for my Tax ID number or SSN because of new IRS regulations Could be a scam! Don't give anyone either of those! swcoin.ecrater.com
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Pillar of the Community
United States
570 Posts |
Quote:
Could be a scam!
Don't give anyone either of those! I originally thought that, but then when I logged into my PayPal account it says the same thing in a yellow banner at the top. This is exactly what it says: Quote:Please provide us with your tax ID number. Your tax ID number lets us send you Form 1099-K, as required by the IRS under certain conditions. Find more information about the new tax rules and why we need your tax ID at http://www.paypal.com/irs. Provide your tax ID number now. The last part is a link to provide your info. Here is a question from the faq's page from the IRS PayPal link: Quote:
Will I be affected by the 2011 tax changes if I only meet one of the thresholds?
No. A seller has to exceed both IRS thresholds ($20,000 in gross payment volume and 200 payments) in 2011 to be affected by the new requirements.
I don't meet both requirements. I'm not even close. There is no way I'm going to do $15k in gross sales by the end of the year. I claim my gains on my taxes, but there is no way I'm getting a tax ID number or giving my SSN out. Just wondering if anybody is in the same boat. I'm going to try to call PayPal tomorrow and see whats going on. |
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Pillar of the Community
United States
5820 Posts |
Doesn't Papal already have your SSN?
I thought they need that information when you sign up, I may have forgotten after all this time.
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Pillar of the Community
United States
5820 Posts |
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Will all sellers receive a Form 1099-K? Quote:
No. Only sellers who exceed the IRS thresholds will receive Form 1099-K. Sellers exceed the IRS thresholds when they receive over $20,000 USD in gross payment volume for the sale of goods or services AND receive over 200 payments for goods or services in the same calendar year. Just copied this question and answer part from Paypal. This states it pretty clear, seller have to full fill both requirements to receive a 1099-K. It doesn't state OR. |
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Pillar of the Community
United States
570 Posts |
Nope, I think you only need a bank account and/or credit card that you have to verify. You should protect you SSN as much as possible and not give it out unless it is absolutely necessary.
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Bedrock of the Community
United States
19930 Posts |
I'm no where close to $20k and they asked for mine too. It's no biggie, just give it to them or they might close your account.
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Moderator
United States
16677 Posts |
They never asked for my SSN.
swcoin.ecrater.com
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Pillar of the Community
United States
2335 Posts |
My wife got one of those emails also. I think they are sending them to anyone that meets either one of the requirements.
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Pillar of the Community
United States
759 Posts |
Their systems probably trigger automated requests for said information when one of the thresholds is approached or passed, as trdhrdr007 mentioned. You shouldn't receive a 1099 unless both thresholds are exceeded. You may not have a choice to withhold your SSN and still keep the account active. By initiating a call yourself, you can get answers and also mitigate the privacy concern. Good to hear you mention that you claim your gains, as required by law.
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Pillar of the Community
United States
570 Posts |
I think after all is said and done my gains are only around $1K, so its not like its going to bump me in the next tax bracket or anything. I just don't like giving out my SSN when I don't absolutely have to. It's more for privacy concerns and my own bank doesn't even ask for that.
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Moderator
United States
187582 Posts |
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I think they are sending them to anyone that meets either one of the requirements. I believe this is the case. They are trying to stay ahead by gathering the information now. It is possible that a lot of people will cross those thresholds in the final weeks of the year (after holiday sales). Having most of this required information available makes it easier to meet tax deadlines. Actually, I am surprised they do not require this information from everyone regardless of activity levels. That being said, I think it is no big deal that they want it from you now. |
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Pillar of the Community
United States
3592 Posts |
I would definitely log in and give the information instead of responding to an email...just a good habit.
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Replies: 25 / Views: 6,076 |
Posted 10/03/2011 9:21 pm
