PayPal Changes

**blackhawkhunter** · 01-10-2013, 02:46 PM

Pay pal has hosed me in the past. If a vendor wont do check or MO instead of Pay Pal I dont buy from them. So far I think I only have had to skip one purchase. It may slow down my delivery time, but its not that big a deal to wait for a bit. Plus the vendor makes more money by not paying the use fee.

**docgra** · 01-10-2013, 03:04 PM

Originally Posted by xj35s

Besides, nobody can get blood from a stone right?

It's pretty obvious that the IRS has never had their vise on YOUR stones......

We should all try to keep it that way.

Just sayin'.......

Doc

**Roamer** · 01-10-2013, 03:05 PM

I suspect this is at least partly related to the Patriot Act. Many states had to reform how they require proof of residency before issuing ID cards. I looked into this extensively when I considered becoming a full-time RVer, and it's become MUCH more difficult to get an ID in any state without a permanent address (and all the utility bills, etc., that go along with that). I suspect PayPal has had to fall in line to help the gov't track who, where and how people are spending money.

**Shnick** · 01-10-2013, 03:25 PM

The .00000000001% of those Paypal users with less than honorable intentions towards our country have to be stopped...

**Ahnkochee** · 01-10-2013, 03:26 PM

Is this directed mainly at sellers who make a profit for tax purposes? I have never sold a thing on eBay but bought a ton in the last ten years. No notice yet for me.

**justin_baker** · 01-10-2013, 03:29 PM

That's a lot of red tape and headaches to go through. Paypal has always been known as an easy and convenient way to pay for things online. I predict this change killing much of their business.

**Guy** · 01-10-2013, 03:36 PM

Originally Posted by Spiffy

"Internal Revenue Code (IRC) Section 6050W states that all US payment processors, including PayPal, are required by the Internal Revenue Service (IRS) to provide information to the IRS about certain customers who receive payments for the sale of goods or services through PayPal. PayPal is required to report gross payments received for sellers who receive over $20,000 in gross payment volume AND over 200 separate payments in a calendar year."
https://cms.paypal.com/us/cgi-bin/ma...ng_us/IRS6050W

Basically, PayPal is required to send a 1099K to the account holder and IRS if the threshold is met -- Hence the need for SSN OR Fed Tax ID.

Hope that helps.

They required that prior this last tax year, IF you hit both thresholds. This is a different requirement that is new.

**Guy** · 01-10-2013, 03:39 PM

Originally Posted by Ahnkochee

Is this directed mainly at sellers who make a profit for tax purposes? I have never sold a thing on eBay but bought a ton in the last ten years. No notice yet for me.

I buy on eBay also, not sell.

**rdec** · 01-10-2013, 03:42 PM

I have received no notice but, offhand, I see nothing in the law that says anything about public display of your name and rather doubt the IRS is interested in every nickle and dime transaction. I also see no reason why this would have any effect on buyers or small, occasional sellers. High volume sellers meeting the threshold would get a 1099 but they likely do anyhow.

**Spiffyguy** · 01-10-2013, 04:26 PM

I have received no notice yet. I looked around on the policy updates on the paypal web site but did not see anything yet. I use half.com to sell my old books. Certainly don't make much cash but I get paid by paypal since it is an ebay site. I am already verified with a credit card on file as well as the bank info. Guess they can ask for more. Perhaps I should provide a sample in a jar and send it in to them