There seems to be some inconsistency with Paypal's IRS reporting obligations. I got a notification from Paypal this morning promoting me to confirm my U.S. taxpayer status because I receive "payment for goods and services through PayPal" and they need to collect this information "prepare the IRS Form 1099-K when it is necessary". However, their help page clearly states, this is only necessary if the payment for goods/services is in excess of $20,000 or 200 transactions. The only exception is if you live in Vermont or Massachusetts, then the amount is $600. I don't receive an excess $20,000 in payments or live in Vermont or Massachusetts. As a matter of fact, the payment I received for services in 2020 is less than $20, which is a negligible amount but of course should still be reported to the IRS. The issues isn't the criteria. The issue is the "Confirm your U.S. taxpayer status" form isn't working. I keep getting an error "personal.auto_verification_failed_". I've looked at the online community and the issue isn't unique to me. I've called help desk and I was told I would receive a call in an hour - if I ever do. However, it looks like until this information is collected, my account will be limited. I'm also very concerned Paypal is collecting information that they don't need to collect.
