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.

Why can't I start a new Topic?

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.

Will a PayPal Employee answer my question?

The PayPal Community Help Forum is a venue for members to assist other members, and is not an avenue to reach customer service.  If you require immediate assistance, assistance directly from PayPal, or account specific information, please contact customer service. 

Another community member is not an employee and is providing assistance to you as a fellow customer. PayPal employees will post in the Community from time to time, but they will always be marked as an employee.  This is noted by the PayPal logo next to their user ID. 

How will this board be moderated?

To help foster this board into a valuable help resource for members, we will be removing any unproductive posts.  Please review the Community Rules and Guidelines to learn more about posting guidelines.

Posting Tips

If you are asking a question, please provide as much information about the situation as you can.  The more information you can provide, the easier it will be for another community member to understand the issue and provide an insightful answer.  Please remember that posting your own or another person's contact information, physical address, email address, full name, phone number, or any other personally identifiable information is prohibited.

Thank you for helping us keep the Community Help forum a friendly and productive environment for all members. We look forward to your contributions! 

[xjfreak]

I have a question on the taxes Pay Pal now files. I only sold around 6,000 this year but i do have over 200 transactions. Does pay pal file taxes on that money? I also need to know if it makes a difference if the items were used or new?

[tva]

Hi,

It's my understanding that Paypal will report an account that gets paid over $20,000 in a year plus have over 200 transactions to the IRS. Does paypal send me a paper accounting or a form I can get off the PP Site of what they are sending to the government for my records and do I need something like this for my records? Paypal already told me that my account would be reported to the IRS because of the amount and number of transactions. So I already know the amount and number of transactions. I have never filed taxes before so any comments are greatly appreciated. Thanks!

[indianjoe]

I am new and have a question. I received over the 20,000.00 limit in my paypal account and over the 200 transactions and need to know if and when I will receive the 1099-K form. Will I be abale to get a copy of it from my Paypal account online.

THANK YOU.

Michael.

[PayPal_Frank]

Hi indianjoe,

Welcome to the community! 🙂

PayPal will send you a 1099-K postmarked on or before January 31^st.  This will be provided via mail and will also be accessible electronically on the Tax Documents section of the website (under the History subtab).

- Frank

[DonGregory]

Hi,

My business made over 20K with 200+ transactions.  I have a premier account, but did not receive more than $10 in dividends, due to me transfering my paypal balance out to another account each week. 

I read on the PayPal site that the 1099 is not required if you don't receive $10 or more in dividends.... is this true?

Thank you,

   Don

[shortwheels]

I received a email from paypal, saying I need to give them my tax ID number, if I do not reach the $20,000.00 limit or the 200 received payments, why do I have to give them my tax ID number ?

[myfiremanishuge]

I received that too, why won't anybody shine light on this?

It seems it doesn't matter, even if you don't meet the requirements you still need to do it.

I have made ~$5k for the past 2 years, does not meet the requirement; except the 200 transactions.

I don't even have a tax id (living with parents) and I'm not going to provide my ssn.

???

[Seibertron]

Where do we enter this information? I've looked all through my profile settings but can't find where to enter the tax id.

[bytes85]

Hello,

a question to Paypal staff: like many others in this thread, I'm not a US resident and don't have to pay US taxes. However, I'm happy to register for ITIN (which I'm as non-resident) eligible for. I contacted IRS acceptance agent and they told me they are very strict in terms of issuing tax IDs, specifically ITIN numbers. To do that, they need a signed and sealed request from a financial institution to get ITIN. Paypal email can't be sent to IRS because it is not an official document, not sealed nor signed. When I called paypal, they advised me to contact Legal dept and only via postal service. No emails, no phones. So the question is: if you need something (or IRS does) why can't you assist in getting this "something" ? Why do you put any possible obstacles for your customers to get it. 

To All: maybe I understood wrong, but on the phone paypal told me that these $20k and 200 transactions are ONLY for 2011 the rest of the year. In 2012 they will report EVERYTHING to IRS, so there is no point in arguing about these limits to my mind. 

Thanks.