The main issue is you have no SSN however, you have registered yourself with PayPal as a business. One has to understand the definitions and use of the terms EIN and ITIN. An Employer ID number (EIN) is used by all other types of businesses, even if the business has no employees. Banks often require a new business to have an EIN before they can open a business bank account. Most individual taxpayers have a Social Security number to use for tax purposes. But some individuals do not have the SSN; these individuals use an ITIN, or Individual Taxpayer ID Number. This number is for individuals, not businesses, and it is used for tax processing purposes for those who are not eligible for Social Security numbers. An ITIN is used by foreign nationals or immigrants or their spouses. It cannot be used to verify eligibility for work or for Social Security benefits. There have been a few big changes in the tax laws this year. As a result of those changes, PayPal is now required to report specific transaction info (1099) to the IRS. For years people have used PayPal to sell items and never reported the sales on their tax records. Not any more and now the IRS knows exactly what your activity is and when you file your taxes, the info should match, else dealing with the government is going to get annoying.
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