I am a longtime PayPal user and am having the same problem. They held my funds and said I needed to upload tax docs for the funds to be released. I uploaded the docs over a week ago and they said "Yes you did everything right and we have all the info we need; we're having a software glitch and will add you to the case." So I tried to refund the money so the payer could pay me another way, and PayPayl withdrew the refund money from my bank account and is now holding that as well!! So now I'm out double the amount, because PayPal is holding it all. The last customer service agent I spoke with said to check back after 72 hours. One can only hope. I also contacted a class action law firm about this.
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Same thing is happening to me, and it's been a week. They have all my tax paperwork, EIN, SSN, everything and they're still holding the funds. I'm going to try refunding the payment and having the payer send it another way. After that, I'm going to cancel my PayPal account because this is unacceptable.
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