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mise_en_place

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Some of us hate Paypal more than others. I used them for five years without issue until about a year or so ago. I've had a handful since, and now I received this message:

​
Confirm your taxpayer status to avoid limitations to your account​

​
Because you receive payment for goods or services through PayPal, we need to confirm your taxpayer status. This verification is required to comply with U.S. Internal Revenue Service (IRS) as well as State tax reporting requirements.

If your taxpayer status isn't confirmed, your PayPal account will be limited, and you won’t be able to request or receive money.

If you’re subject to U.S. tax reporting requirements, we’ll also need to collect your taxpayer identification number and also ensure that your business type is correct within your Profile (Business Information section) to prevent reporting issues in the future.
The taxpayer identification number you provide will be used to submit Form 1099-K to the IRS and the state associated with your PayPal account's primary address when the payments you receive in a calendar year meet the income reporting thresholds set by the IRS or the applicable state. You can learn more about your state and IRS reporting requirements at www.paypal.com/irs.

If you have multiple PayPal accounts, you’ll need to verify your tax payer status for each account.
If you have already provided your tax identification number, it's possible that you are receiving this message because the combination of your Name/TIN didn't match IRS records.

Thanks for being a valued customer.

Has anyone else had to do this? Seems every time I turn around Paypal wants more and more of my information (asking for multiple bank accounts/cards etc). I really am not interested.
 
I'd follow the link they provide you, if I wanted to verify.

"The taxpayer identification number you provide will be used to submit Form 1099-K to the IRS and the state associated with your PayPal account's primary address when the payments you receive in a calendar year meet the income reporting thresholds set by the IRS or the applicable state. You can learn more about your state and IRS reporting requirements at www.paypal.com/irs. "

Pretty self-explanatory, it seems you receive a lot of payments through Paypal. Explanation as to why others don't get the same sh1t would be either State requirements or lower amount of money coming in.
 
Did you get that message when you log in on Paypal? If it came via email it is likely a scam. I certainly would not follow links in an email without verifying that you are actually corresponding with paypal.

If it is for real, and you report your paypal income, there is no problem.
 
they will send you a 1099...they keep track of the goods/ services if you gross over a certain amount. they do not count the friends and family value on the 1099.
 
ModRQC said:
Pretty self-explanatory, it seems you receive a lot of payments through Paypal. Explanation as to why others don't get the same sh1t would be either State requirements or lower amount of money coming in.
Click to expand...

That's the thing, I don't receive a lot of payments through Paypal.

VICTOR J CREAZZI said:
Did you get that message when you log in on Paypal? If it came via email it is likely a scam. I certainly would not follow links in an email without verifying that you are actually corresponding with paypal.

If it is for real, and you report your paypal income, there is no problem.
Click to expand...

I was going to see on the website itself, since this was an email.
 
I had to do it.

I dont think it's that big of a deal. Paypal is just complying with the law, and this is what everyone apparently wants instead of just having a sensical income tax schedule 🤷

I'm far more inconvenienced by check reporting laws that require me to go to a bank in person during the time of COVID.
 
mise_en_place said:
Some of us hate Paypal more than others. I used them for five years without issue until about a year or so ago. I've had a handful since, and now I received this message:

​
Confirm your taxpayer status to avoid limitations to your account​

​
Because you receive payment for goods or services through PayPal, we need to confirm your taxpayer status. This verification is required to comply with U.S. Internal Revenue Service (IRS) as well as State tax reporting requirements.

If your taxpayer status isn't confirmed, your PayPal account will be limited, and you won’t be able to request or receive money.

If you’re subject to U.S. tax reporting requirements, we’ll also need to collect your taxpayer identification number and also ensure that your business type is correct within your Profile (Business Information section) to prevent reporting issues in the future.
The taxpayer identification number you provide will be used to submit Form 1099-K to the IRS and the state associated with your PayPal account's primary address when the payments you receive in a calendar year meet the income reporting thresholds set by the IRS or the applicable state. You can learn more about your state and IRS reporting requirements at www.paypal.com/irs.

If you have multiple PayPal accounts, you’ll need to verify your tax payer status for each account.
If you have already provided your tax identification number, it's possible that you are receiving this message because the combination of your Name/TIN didn't match IRS records.

Thanks for being a valued customer.

Has anyone else had to do this? Seems every time I turn around Paypal wants more and more of my information (asking for multiple bank accounts/cards etc). I really am not interested.
Click to expand...

lol. they only want 1 document. try opening a bank account in scandianavia!! took me 3 months. and i'm a citizen here...
 
I wonder what the threshold is in terms of $ (per year? per month?), or volume that triggers the requirement.
 
parbaked said:
$20,000 gross receipts AND over 200 transactions:
Click to expand...

There's no way I'm even close. That's in a calendar year, according to them.

Edit: Just signed in again and it's legitimate I guess. There was a notification when I signed in. I'm still confused since I'm well under the $20K threshold by over $16K and nowhere near 200 transactions for the year. I just checked my history. 🤷‍♂️
 
Last edited:
what is the upper limit one is allowed to launder through paypal these days?
 
mise_en_place said:
There's no way I'm even close. That's in a calendar year, according to them.

Edit: Just signed in again and it's legitimate I guess. There was a notification when I signed in. I'm still confused since I'm well under the $20K threshold by over $16K and nowhere near 200 transactions for the year. I just checked my history. 🤷‍♂️
Click to expand...
Check your profile and see if your SSN is listed. You may have gotten this notice because they don't have a SSN or TIN for you on record.
They might just need that number in case you go over the threshold.
Because they hold deposits, PP is now being treated like a bank and need to maintain more personal information for their account holders...

The taxpayer identification number you provide will be used to submit Form 1099-K to the IRS and the state associated with your PayPal account's primary address when the payments you receive in a calendar year meet the income reporting thresholds set by the IRS or the applicable state.
 
IL an VA specifically have very very low limits.
IL is $1000 or 3 transactions ... that's not much for BST.
My confusion is that rules about 1099k talks about vendor code ... and seems to imply it's all an income in a business. (if it is an income, means I write off all the knife purchases now?)
 
Barashka said:
IL an VA specifically have very very low limits.
IL is $1000 or 3 transactions ... that's not much for BST.
My confusion is that rules about 1099k talks about vendor code ... and seems to imply it's all an income in a business. (if it is an income, means I write off all the knife purchases now?)
Click to expand...
Probably best answered by researching at IRS web site and Illinois tax office web site. You should probably know what might get flagged by IRS and your state when they process your income tax returns.
 
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