I am being asked for a TAX ID number on a business account, why?
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I am confused as to why I am being asked for a TAX ID when they already have my information. The business account is not earning money and is used as a third-party extension to buy items for others. It is a separate account that is being given money through friends and family in order to purchase goods for individuals who submit orders. Am I going to be taxed for this? I find it unfair that I am going to be taxed for something I am not earning money or profiting from in any form or way.. Can someone help me with this?
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If you are only receiving friends and family payments to buy stuff then it’s negligible but PayPal has to collect tax ID due to new rules, the federal threshold has been lowered to $600 for 2022 reporting for 2023. But if you receive f&f, then you won’t be taxed. Only goods and services payments are reported to the taxman.
Kudos & Solved are greatly appreciated. 🙂
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