SS# to Paypal?

Messier2 · Sep 12, 2011

I recently got an email from Paypal asking for my SS# for tax purposes. They say that if you exceed $20,000 in gross sales AND have over 200 payments, that IRS needs to know about it etc.

I do have over 200 payments but nowhere near $20,000 in gross sales...has anyone else received this email and did you "fork it over"?

markakis8 · Sep 12, 2011

I would stay away from any emails from paypal or ebay...too many fishing scams.

Simple thing is to log into your paypal and they should alert you inside your account if they actually need it.

Messier2 · Sep 12, 2011

markakis8 said:
I would stay away from any emails from paypal or ebay...too many fishing scams.

Simple thing is to log into your paypal and they should alert you inside your account if they actually need it.

They do. It's legit.

Musial Collector · Sep 12, 2011

https://cms.paypal.com/us/cgi-bin/marke ... s/IRS6050W

It says AND so I take it as having to be both 200 sales transactions AND $20,000 in gross revenue

Messier2 · Sep 12, 2011

Musial Collector said:
https://cms.paypal.com/us/cgi-bin/marketingweb?cmd=_render-content&content_ID=marketing_us/IRS6050W

It says AND so I take it as having to be both 200 sales transactions AND $20,000 in gross revenue

Yes, both.

I just calculated my gross sales and thankfully (or not depending on how you look at it!) it is way under $20,000 so far this year. So, I just gave it to them knowing that they won't need to use it at all!

Jaypers · Sep 12, 2011

Messier2 said:
Musial Collector said:

https://cms.paypal.com/us/cgi-bin/marketingweb?cmd=_render-content&content_ID=marketing_us/IRS6050W

It says AND so I take it as having to be both 200 sales transactions AND $20,000 in gross revenue

Click to expand...

Yes, both.

I just calculated my gross sales and thankfully (or not depending on how you look at it!) it is way under $20,000 so far this year. So, I just gave it to them knowing that they won't need to use it at all!

You sure that was the right course of action to take? Seeing as how you didn't meet both of their criteria, weren't they in error by requesting your SS#?

JackLondon · Sep 12, 2011

Is there an easy way to find out how many separate Paypal transactions we have?

Jastermereel · Sep 12, 2011

I believe it was confirmed that it's either 200 transactions or $20k in sales. Someone on the board called the IRS and asked.

Messier2 · Sep 12, 2011

Jaypers said:
Messier2 said:

Musial Collector said:

https://cms.paypal.com/us/cgi-bin/marketingweb?cmd=_render-content&content_ID=marketing_us/IRS6050W

It says AND so I take it as having to be both 200 sales transactions AND $20,000 in gross revenue

Click to expand...

Yes, both.

I just calculated my gross sales and thankfully (or not depending on how you look at it!) it is way under $20,000 so far this year. So, I just gave it to them knowing that they won't need to use it at all!

Click to expand...

You sure that was the right course of action to take? Seeing as how you didn't meet both of their criteria, weren't they in error by requesting your SS#?

They say they request these things in advance. I guess I reached a certain "mark" that they think you would hit $20K soon...anyway, I won't (unless I hit a Ruth cut auto) that I will hit the $20K mark this year.

Messier2 · Sep 12, 2011

Jastermereel said:
I believe it was confirmed that it's either 200 transactions or $20k in sales. Someone on the board called the IRS and asked.

It should be AND, not either.

nosterbor · Sep 12, 2011

Paypal states . they will NEVER email you for a request for your SS#. if you do i hope you have Lifelok or something.

Jastermereel · Sep 12, 2011

I believe it's just poor wording, and it's actually either.

Messier2 · Sep 12, 2011

nosterbor said:
Paypal states . they will NEVER email you for a request for your SS#. if you do i hope you have Lifelok or something.

They have a link WITHIN my paypal account info site so it's definitely from them.

Messier2 · Sep 12, 2011

Here is a link I use to verify their policies on this:

http://www.paypal.com/irs

Pinbreaker · Sep 12, 2011

I know a few people who have been getting these e-mails and they called Paypal and they are legit..

I think that paypal is covering their ass for when the gov requests come in..

Messier2 · Sep 12, 2011

I think this FAQ Q and A will put any doubts to rest on the "either" or "and" discussion:

Q: Will I be affected by the 2011 if I only meet one of the thresholds?

A: 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

bcubs · Sep 12, 2011

From Paypal...link below

Under the new legislation, we’ll report to the IRS the total payment volume received by US account holders whose payments exceed both of these levels in a calendar year:

$20,000 USD in gross payment volume from sales of goods or services in a single year
200 payments for goods or services in the same year

The IRS changes apply to all payment providers, including PayPal and include all 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’ll be asked to add your tax ID number, such as a Social Security Number (SSN) or Employer Identification Number (EIN), to your existing account(s), if you don’t already have one on file.

https://cms.paypal.com/us/cgi-bin/marke ... s/IRS6050W

jcmint · Sep 12, 2011

I am wondering if its 200 paypal transactions or ebay transactions.

BGSRCGUY · Sep 12, 2011

jcmint said:
I am wondering if its 200 paypal transactions or ebay transactions.

I think its paypal transactions. Gift payments do not count.

Tax law is pretty interesting, there are so many deductions that your net pay[to irs] should be so low if zero.

Jaypers · Sep 12, 2011

Why does Paypal ask you for your SS# before you've crossed the threshold?

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