IRS question

[felixlau916]

The new law states that PayPal will report details of your account directly to the IRS if you meet the following limits in a calendar year:

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

what's the 200 payments mean?

is that only for selling good on ebay? is it included the buying too?

Thanks

[Oregon11]

@felixlau916

An account will be issued a 1099K if it receives Goods & Services payments (from any source) totaling over $20,000 and 200 payments. If an account receives $25000 in Goods & Services payments but received that amount in 150 payments, they would not receive a 1099K.

PayPal accounts in Vermont & Massachusetts will receive a 1099K if they receive more than $600.00 in Goods & Services payments.

Here is a PayPal link with details.

https://www.paypal.com/us/smarthelp/article/how-does-paypal-report-my-sales-to-the-irs-will-i-receiv...