Power Sellers Unite

elgato · Joined: 24 Feb 2005 Posts: 17240 Location: Texas

PayPal has begun requesting that sellers supply them with their social security numbers thanks to a new 1099K reporting law. But sellers who are nowhere near the level of payments required by the law say PayPal is unnecessarily asking them for their tax ID numbers and in some cases are coercing them into providing the information. PayPal refused to tell EcommerceBytes what specific criteria trigger those requests.

The new law requires PayPal and other payment processors to report seller's gross payment volume when payments exceed both $20,000 in gross payment volume from sales of goods or services and 200 payments for goods or services in a single year.

http://www.auctionbytes.com/cab/abn/y11/m09/i06/s01

Katinka · Joined: 12 Jan 2007 Posts: 50

To comply with 1099-K reporting for IRS, I dutifully supplied my TIN for Google Checkout as requested, but in trying to do the same with PayPal, I've only succeeded in having my account restricted. I'm a small fabric arts artisan and seller on eCrater, ArtFire, and Etsy--using PP only for the latter two. Never had difficulty with PP until now, although I've read the horror stories, especially on the eBay boards. So I'm small potatoes in the world of online selling.
I was able to supply the TIN for GCO with no problem. But attempting to do so with PP, I ran into robots who kept trying to upgrade me to more services (for additional fees, natch)--never did get to a screen when I could input TIN. I finally bagged that route, and talked with two polite, friendly PP reps. I gave the TIN to one. But instead of solving the problem, I've been asked for "IRS statement, letter of acceptance, or business certificate . . . showing my business name and complete" EIN or TIN. Barring that, I'm supposed to supply my SS#.
When I suggested to the rep that the rigamarole appeared to be a ploy to exact more fees, he denied that. I'm curious why GCO's procedure was so simple, but PP's is complicated and seems far afield of what IRS requires.
Meanwhile my CPA is trying to make sense of the instructions, so I can comply.
Any thoughts? Thanks.

Lisa @ Handbags4Hunger · Joined: 19 Jan 2009 Posts: 1

Katinka wrote: › docWrite("quote")To comply with 1099-K reporting for IRS, I dutifully supplied my TIN for Google Checkout as requested, but in trying to do the same with PayPal, I've only succeeded in having my account restricted. I'm a small fabric arts artisan and seller on eCrater, ArtFire, and Etsy--using PP only for the latter two. Never had difficulty with PP until now, although I've read the horror stories, especially on the eBay boards. So I'm small potatoes in the world of online selling.
I was able to supply the TIN for GCO with no problem. But attempting to do so with PP, I ran into robots who kept trying to upgrade me to more services (for additional fees, natch)--never did get to a screen when I could input TIN. I finally bagged that route, and talked with two polite, friendly PP reps. I gave the TIN to one. But instead of solving the problem, I've been asked for "IRS statement, letter of acceptance, or business certificate . . . showing my business name and complete" EIN or TIN. Barring that, I'm supposed to supply my SS#.
When I suggested to the rep that the rigamarole appeared to be a ploy to exact more fees, he denied that. I'm curious why GCO's procedure was so simple, but PP's is complicated and seems far afield of what IRS requires.
Meanwhile my CPA is trying to make sense of the instructions, so I can comply.
Any thoughts? Thanks.There is some good advice posted here: good luck!
http://blog.auctionbytes.com/cgi-bin/blog/blog.pl?/pl/2011/9/1315272552.html

Katinka · Joined: 12 Jan 2007 Posts: 50

Curious, just got word today that PayPal restored my account, but it was never under restriction. I wonder if one hand knows what the other is doing there. Thanks for the resources.

shrk2thgrl · Joined: 19 Nov 2010 Posts: 7

I had one account with PP that was basicly shut down because I didn't submit a SS or BIN and I went over the 20K/200 transactions. So I opened a new PP account and it worked great until I had someone who filed a dispute from the first account. I withdrew some money from the new account and all of a sudden I was Limited as they now have linked me to the old account which now has a negative amount of money showing due to the dispute. So all my money is now frozen in the new account. They are wanting me so submit information I can't provide. So my question is, what is going to happen to all my money? Is PayPal basically just going to keep it or do they have to release it to me at some point? If that negative amount in the first account is brought back up to zero, will that release my funds in my new account??
Thanks

things4u · Joined: 21 Jan 2007 Posts: 1331

why not just submit your ssn either way being over the 20/20 amounts your going to have to pay the taxes as they will submit it to the irs
and even if you don't go over those amounts you still should pay your sales and claim your income from sales as well be honest the days of making money and not paying any taxes on your sales is over

shrk2thgrl · Joined: 19 Nov 2010 Posts: 7

I can't due to being kicked off ebay several years ago for trying to help someone out on the ebay forums and saying something that was not allowed. So I had to start up another ebay account with a different name which I don't have identification for. I did the same for PP so they would be of the same name, address etc etc...