When will PayPal update payment threshold?

[NbaEverday]

PayPal is holding money from me because I have received money for more than $600. The problem is that the IRS changed the rule a week ago for companies like PayPal to delay the 1099-K tax withholding back up to $20,000 and 200 transactions from the low $600 threshold due to it being a stupid rule and creating problem for everyone. When will PayPal update their system? They are unjustly and unfairly holding money that. At the end of the day, wasn’t even mine. It was from a family/friend to get their money out of PayPal because their banks don’t allow to get their money out of PayPal. It’s been 7 days since the IRS themselves announced this yet no changes on PayPal’s end. I don’t understand. Source: https://www.irs.gov/newsroom/irs-announces-2023-form-1099-k-reporting-threshold-delay-for-third-part...

[confusedallways]

I agree! We need to know which way they are going.

[skier303]

What about all the money they have already taken from people by with holding 24% for the irs that never claimed that money?

[skier303]

they obviously know about it. https://newsroom.paypal-corp.com/2021-11-04-New-US-Tax-Reporting-Requirements-Your-Questions-Answere...

[skier303]

not only are they doing nothing. they are also still miss informing people about the tax threshold.

[BBQTurtle]

You ever get this solved? Having same issue. Not even close to the 20,000 threshold and my payment is on Tax ID Hold until I give them my SS (which I don't give out easily)

[skier303]

I haven't. don't know about the others. they even took 24% my stubhub money from 2022 because I didn't get the payment until January 2023. Paypal said they took my money to give to the irs but the irs says they are no longer required to send that money. so where is my money. PayPal says the irs has it and the only way to get it is to file the 1099k that they are not sending me lol wow guess my money is is an invest account and making them lots of money in interest.

[PayPal_Bindu]

Hello @skier303 and everyone,

Thank you for writing your post in the PayPal Help Community!

I understand your concern about the Tax Holds in your PayPal account. When you’re paid for goods and services, the US Internal Revenue Service (IRS) considers this reportable income. Once you reach the threashold of $600 within a calendar year, tax laws require us to withhold 24% of such payments when you have not confirmed your taxpayer status by either providing your US tax ID or completing a Certificate of Foreign Status. This 24% is sent to the IRS as backup withholding for any potential income tax due on those payments. You can confirm your taxpayer status by either adding your US tax ID or completing a Certificate of Foreign Status at any time to end the tax ID hold and backup withholding on your payments. I recommend referring this article to learn more about Tax holds, Backup withholding here.

I hope this information helps you,

Bindu

[skier303]

hello @PayPal_Bindu  you are a liar. please stop its really just annoying at this point. I am not even going to tell you to read the links from paypal and the irs that I and other have posted. I know you have. I guess paypal is just about lying and stealing your money with those lies.

[skier303]

just received $461 from stubhub and paypal is telling me anything over $400 requires a tax id lol wow can you people steal and lie a bit better. I mean put some thought into it.