PayPal Reporting to the IRS

[mowerman1193 29]

This is copied from a topic from another forum. But I know there are a lot of you guys that sell parts etc. and just thought maybe you all might like a little heads up on this.

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Under the new legislation, PayPal will be required to report to the IRS the total payment volume received by PayPal customers in the US who:

Receive more than $20,000 in gross payment volume in a single year, AND

Receive 200 or more payments in a single year.

The IRS changes will apply to all payment providers, including PayPal. They will take effect on January 1, 2011, with the first reports going to the IRS in early 2012. Our goal is to help PayPal merchants to understand and comply with the new requirements.

If you meet the stated thresholds, you will be required to verify your identity by adding a SSN/TIN/EIN to your existing account. If you are currently using a Personal or Premier account, you will be required to upgrade to a Business account.

When Do the IRS Changes Go into Effect? IRS 6050W covers all transactions in the tax year 2011 and each tax year that follows. Beginning in 2012, qualifying merchants will receive a 1099-K Form either electronically or by mail. Transactions occurring prior to 2011 will not be affected by this legislation.

Will All Merchants Receive 1099s? No. Only merchants who receive over $20,000 in gross payment volume AND receive 200 or more payments in a calendar year will receive Form 1099-K electronically or by mail.

There is a long list of What if questions on the actual paypal site so if you have more questions be sure to check it out.

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Kevin

[Brrly1 1,146]

OUCH!!! But you had to expect it sooner or Later

Burly

[wheelhorsec85 5]

yea new it was coming . glad i do not fall in that catagory they are talking about . :)

[horsefeathers 15]

Someone needs to cut holes in them politions pockets 'n give them something to play with!

That'll keep'em busy!

Nope, they'll think of a way to charge us for that too!!!

[bmuone 15]

They don't use their pockets Horsefeathers....they use ours. And I already got a hole in mine.

[mavfreak 11]

I know this is a little off subject but close to it. The feds were going to yard and bake sales looking for taxs being paid.

[Dockfishin 51]

Sounds like anyone using it needs to keep track of expenses and receipts, gas to pick up parts/tractors cost of tractors phone bill for calling and searching, internet bill etc...... they play the game to take ya gotta play the game to keep.... all ya can do with them :thumbs: