Apparently, there is a new law that requires PayPal to report all incoming payments to the IRS. They have requested my (our) SSNs in order to do so. I get it, but I am self-employed and pay my own quarterly taxes and have for 30 years. I have also been a PayPal member for 24 years. I do not just want to provide my SSN to privately held companies unless required to by law. I contacted the IRS, and they told me I am not breaking any laws by refusing to give PayPal my SSN. PayPal is required by law to collect 24% of funds to pass to the IRS IF I don't give them ymy SSN. Okay. That's my choice. So, this Monday, I received my earnings from a company I am contracted with to perform a service, as I have for the last six or so years, but this time PayPal put a hold on ALL OF IT. They said they are going to keep it for 60 days (and all other paychecks that come in) before collecting the 24% and sending it to the IRS, and THEN they will release the two months of paycheck they have been collecting. HOW IS THIS LEGAL???? I want to close my account, but can't because of the hold. They will not release the hold so I can close my account. I DO NOT WANT TO DO BUSINESS WITH PAYPAL when they use strong-arm tactics such as this and are basically blackmailing me into doing something I am NOT required to do. All the law allows them is to keep 24% of my funds, NOT ALL OF IT. IRS validated this. But does PayPal care? No. Because they have the power. Again, a good example of why I am not trusting them with my SSN or having any control over any future earnings!
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