Does Paypal send any info to the IRS

[WOODCASTLE]

Some one told me that Paypal was sending info to the IRS
Has any one received a 1099 or know if this is true?

[HausofAriella]

I know they do if you have a business account.

[curiouscatfish]

I think over $20,000 or 200 sales. I could be wrong about #'s but I saw it somewhere on Etsy. Maybe search in help.

[Former_Member]

I filed my taxes this year and reported my income from Etsy. It was not that difficult. I would rather not worry about the IRS hunting me down for unpaid taxes. :)

[WOODCASTLE]

Any one else know anything about this.

[KriyaDesign]

Yes, if the transactions exceed 200 and $20,000 annually. PayPal is asking for SSN or EIN so they can send you and IRS the 1099 form (something like this). That is if you registered as business account. They made this announcement around October last year and you should see the announcement in your PayPal account too. And they won't stop bugging you until they have your SSN :-)

[Former_Member]

Hey WoodCastle, you'll find answers to your questions in this Online Lab and blog post we did with one of our tax/accounting partners. Hope this helps!

http://www.etsy.com/blog/en/2012/the-paypal-1099-k-dont-fear-it/
http://www.livestream.com/etsy/video?clipId=pla_1c67bfb7-fde1-4e24-a0d1-b923dfb42b74

[Former_Member]

They're on their way to arrest you right now!!! Barricade your door!!!!

Only kidding - in any single given tax year is $20k or 200 incoming transactions, whichever comes first...

Emms....

[MellowMoonSupply]

Oh Crabapples!
Guess I'm going to have to let Uncle Sam in on my hard earned money!
I have small sales, but over 200... definitely not $20.000 worth!
Dear IRS please let us little people alone! :-(

Oh No! I hear someone knocking at my door......................

[Former_Member]

So does this mean we should start collecting taxes on our sales? Tax stuff is so confusing to me.

[Former_Member]

Paypal sends the 1099 form if you have 200 transactions AND sell at least $20,000 worth ( it is an "AND" not an "OR" ). They will require the SSN or EIN if you achieve either 200 transactions OR $20K in sales (to keep track of you).

[MellowMoonSupply]

I just read and re-read the above post... and / or
So
200 transactions AND $20,000
200 transactions OR $20,000

Sounds like either and both?
Scratching my head........

[seemomster]

I collect taxes for in-state purchases. Out of state? As I understand it...I'm not liable.

[ArtsyAlbums]

that is how I understand it Melanie..collect taxes for in-state purchases, not out of state.