Have Tax Information questions? Post here!

[PayPal_Adrian]

Welcome to the Tax Information thread!

Should I post my question here?

Starting in 2011, all U.S. payment providers, including PayPal will be required by the IRS to report sales information about merchants who exceed $20,000 and 200 transactions to the IRS. If your question is related to this topic, please reply with a question or to assist another member.

We will  be merging existing questions in the Community into this board.  More information will be made available later.  Until an update is provided, please check out the previous IRS Workshop and www.paypal.com/irs. 

What questions don't go here?

All other tax-related questions, such as Profile settings for Tax, adding tax to invoices, adding tax to payments, whether or not you should charge your buyers tax, what tax rates to charge, are considered Off Topic and will be moved.  These questions are better placed in the About Business board instead.

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To facilitiate productivity in this board, and to keep questions and answers in one place, members can only post questions in this thread.  You will be able to reply to this topic, but not start a separate, new thread.

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[danielwalls]

To anyone that can help,

I work as a contractor for a friend of mine on an houyly basis.  I receive payment through PayPal as a mass payment sent directly to my PayPal account from the 'employers' PayPal account.

Since the payment is sent as a mass payment fees are not take from the payment that I receive.  I have received well over $20K in payments, however, I have way below 200 transactions for the entire year of 2011.

Will the 1099-K be applicable in my situation?

[PayPal_Adrian]

Hello danielwalls!

According to www.paypal.com/irs,  you would need to hit both criteria for PayPal to file a 1099-K:

"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"

Based on the information you have provided, it would not appear that PayPal would report this to IRS as part of this legislation.

Thanks!

Adrian

[erwin_smn]

I don't understand why paypal can't send me an OFFICIAL or SIGNED letter showing my name and address and showing that ITIN is required.

I am not a US citizen and I do not work here, So I do not have SSN, ITIN, or ETIN.

IRS can not give me ITIN because I do not have any income.

IRS said if a bank or any financial institution (paypal) required ITIN, then I must show the document to IRS that Paypal need ITIN from me.

I print the email that I received from paypal and I print my paypal account showing that my account need ITIN, but IRS refuse those document. They need an OFFICIAL and SIGNED letter from paypal.

My application requestiing ITIN  has been rejected twice by IRS due to unsupported document.

I am confuse now and I can't remove the limitation on my paypal account. 

[PayPal_Adrian]

erwin_smn - Are you subject to US taxation?  If not, please contact customer service.

Thanks!

Adrian

[seasalt81]

Is there a report that will show how many transactions we've had this year? I found the Financial Summary, but that only lists the amount of money made. 

If we will be getting a 1099k, when will that be available in the Tax Documents section of our account?

Thank!

[Memnoch9299]

My account has around 40-50 transactions and just under $5,000 so obviously I'm not going to meet either threshold, but how do I go about reporting this information for my taxes? Do I need to request a 1099-K? If so how do I go about that?

Thanks,

Memnoch9299

[Islands-Of-Time]

Why are you asking for my tax ID #? I have been using PayPal a while but, just now got a request for this. An explanation would by nice. Thanks!

[Misty11]

Hello Islands-Of-Time, 

Welcome to the Community . 

The reason PayPal is asking for your Tax ID# is because the new IRS law requires that all U.S. payment processors, including PayPal, report gross payment information to the IRS about certain customers who receive payments for the sale of goods or services.

We’re required to report gross payments received by our customers who:

• Receive more than $20,000 in gross payment volume from sales of goods or services in a single year, AND
• Receive more than 200 payments for goods or services in the same year.

Please visit the PayPal IRS information page for more information.

Misty

[Soon91]

Hi, i'm a foreign student at US and i'm using my US student bank account for my paypal. What should i put in tax ID number as well as SSN?

Thanks

[Misty11]

Hello Soon91 and Welcome to the Community .

To determine if you would want to provide your SSN# or TIN would depend on how you are filing your taxes. To answer your question, add your SSN# if you are going to file and claim the funds received personally. If you are going to file and claim  the funds received under a business add your TIN#. You may also want to review the PayPal IRS guidelines to determine what number to add.  I hope this helps.

Misty