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lana519
lana519 New Community Member
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Does Paypal send tax forms?

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?

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skier
skier Volunteer Advisor
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Re: Does Paypal send tax forms?

PayPal only provides you with the means to collect sales tax and provides some limited reporting functions. 

 

 

Regards,

 

skier

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