Tuesday, August 9, 2011

eMail from PayPal

We're asking for your tax ID number due to new IRS rules. Your tax ID
number is one of these:
- Your Social Security number
- Your Individual Tax Identification Number
- Your Employer Identification Number

We'll use your tax ID number to send tax Form 1099-K to you and the IRS
when the payments you receive exceed both of these milestones in a calendar
- $20,000 in gross payment volume for goods and services
- 200 payments

We want to help you continue to sell with PayPal and to avoid any
interruption to your account. It's easy — here's how:
1.  Log in to your PayPal account.
2.  A message will appear asking you to update your information.
3.  Click Provide Now.

If you have multiple PayPal accounts, repeat these steps for each account.

We appreciate your help in complying with these IRS rules. For more
information, please see our FAQs on the IRS reporting requirements:

......................................................  COMMENTS WELCOME!


Anonymous said...

Not sure I want you to actually "Post" this comment, I'm just wondering if this is real or not. I've not received and email like this.

Danna Crawford said...

YES it is a real email from PayPal. I must of it the limit is all I can think of!

Anonymous said...

Can you clear up a question for me? I've read the new "rule/ policy" over and over but I'm a little confused still. Does one need to meet BOTH criteria ($20K AND 200 items) or is it simply either/ or? Thanks in advance :o)

Danna Crawford said...

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.

Anonymous said...

Are you sure you don't just need to hit the money target? IRS is involved after all.Geesh - this is making me nauseous. I think I have to be very, very close... if I didn't just do it without thinking! Wondering how I can check to see if I have already given them the info...

Tonya said...

Thanks for bringing this up. I have been selling quite a bit on ebay recently...just a drop in the bucket compared to 20,000 though! How do you report your earnings on your taxes, or do you not have to unless you reach the 20,000?? I typically pick up toys and such at yard sales and then resell them. Thanks for your input!!

Danna Crawford said...

Yes, no matter how much you make on eBay it's my understanding you do need to report that on your taxes, it is income BUT PayPal will not report your earnings until you hit the amount posted.