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Have you been advised that PayPal will now be reporting your payments to the IRS?
PayPal advises:
Starting in 2011, all U.S. payment providers including PayPal will be required by the Internal Revenue Service (IRS) to report sales information to the IRS about certain customers who receive payments for the sale of goods or services through PayPal. We want to help you understand these changes.
Applies to sellers receiving over $20,000 in gross payment volume AND over 200 payments
Applies only for sales on or after January 1, 2011
Questions? Log in to your account or call 1-888-221-1161
What is Internal Revenue Code (IRC) Section 6050W?
Under the new legislation, PayPal will be required to report to the IRS the total payment volume received by PayPal customers in the US who:
Receive more than $20,000 in gross payment volume from sales of goods or services in a single year, AND
Receive over 200 payments in a single year.
The IRS changes will apply to all payment providers, including PayPal. They will take effect for sales that occur on or after January 1, 2011, with the first reports going to the IRS in early 2012. Our goal is to help PayPal sellers understand and comply with the new requirements.
Before your payment volume exceeds the reporting thresholds, you will be required to verify your identity by adding a Tax Identification Number, such as a, Social Security Number (SSN), or Employer Identification Number (EIN), to your existing account(s).
Starting in 2011, all U.S. payment providers including PayPal will be required by the Internal Revenue Service (IRS) to report sales information to the IRS about certain customers who receive payments for the sale of goods or services through PayPal. We want to help you understand these changes.
Applies to sellers receiving over $20,000 in gross payment volume AND over 200 payments
Applies only for sales on or after January 1, 2011
Questions? Log in to your account or call 1-888-221-1161
What is Internal Revenue Code (IRC) Section 6050W?
Under the new legislation, PayPal will be required to report to the IRS the total payment volume received by PayPal customers in the US who:
Receive more than $20,000 in gross payment volume from sales of goods or services in a single year, AND
Receive over 200 payments in a single year.
The IRS changes will apply to all payment providers, including PayPal. They will take effect for sales that occur on or after January 1, 2011, with the first reports going to the IRS in early 2012. Our goal is to help PayPal sellers understand and comply with the new requirements.
Before your payment volume exceeds the reporting thresholds, you will be required to verify your identity by adding a Tax Identification Number, such as a, Social Security Number (SSN), or Employer Identification Number (EIN), to your existing account(s).
Views: 42
Replies to This Discussion
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Permalink Reply by Mary Wessell on
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I have been advised now. Thanks for the head's up on this.
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Permalink Reply by Bridget Turnbach on
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Great~! I recently went through an IRS audit. It was extreamly violating. Especially at the end when the auditor pulled out a balance sheet on our entire household budget and what we spend on food, drycleaning, entertainment and on and on. Compared this to our AGI and said we made more then we claimed. This had nothing to do with the questions we were being audited on but a cheep shot at the end to generate income. It's getting bad out there, I feel sad for us small business owners because the effects of an audit or investigation can be devesating.
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