Tax ID hold

[NicoleGould]

If someone is paying me through PayPal for a used piece of furniture I’m selling them and it’s over $600, I shouldn’t have to have a tax id. Why is it putting the payment on tax id hold? This is not a resale or a service.

[PayPal_Bindu]

Hello @NicoleGould 

Welcome to the PayPal Help Community and thanks for posting!

I am happy to help you with your inquiry here! When you’re paid for goods and services, the US Internal Revenue Service considers this as reportable income. Once you reach the threshold within a calendar year, tax laws require us to withhold 24% of such payments when you have not confirmed your taxpayer status. When you receive $600 in payments for goods and services, we’ll place your payments on a tax ID hold for at least 60 days until you confirm your taxpayer status by either providing your US tax ID or completing a Certificate of Foreign Status. I recommend referring this article for more information on PayPal tax holds for US taxpayers. 

Hope this information helps, have a great day!

Bindu