To make a long story short, one of the things my website business will be doing is sending payments (earnings) a user makes on the website through Paypal. I'm based in the U.S. and therefore have to comply with the law that says a person who makes $600 or more each year from someone has to pay taxes on it. If I end up paying a total of $600 or more to someone in a year, will Paypal automatically send that person the proper paperwork for their taxes or is there something I need to do? Keep in mind, business is done with the Paypal IDs on my site so I'm not asking for anyone's social security number or other information and I know that Paypal does have this information for all its users. Can anyone confirm for me that Paypal does this?