PayPal and IRS

Whats your thoughts on this. This law goes into effect 2011 that states if you make mroe than 20k and 200 payments using Paypal they will report you to IRS and send you a 1099.

Well inroder for them to send a 1099 they need to have your SSN and well i will never give Paypal or Ebay my SSN.

Any thoughts.


https://www.thepaypalblog.com/2008/0...ts-become-law/

i think it's 200 payments and/or 20k.

According to Ken Swab of PayPal

"PayPal will be reporting the total payment volume for accounts that receive over $20,000 and receive more than 200 payments per year. A business receiving $15,000 in payments per year would not meet the requirements of the legislation. Please see my update to the post above for more clarity on the rest of your questions."

so this means if say i made 10k in 201 payments i will not have to file a claim on the income according to the new legislation coming into affect. As to file you need a 1099

So its basically a Honor system with paypal. If you make below the amount paypal wont send the info int othe irs for a 1099 but they expect you to still file on it.


How does state taxes work if all your sales are out of state. I hate taxes and i want to figure this all out before the law goes into effect.

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Originally Posted by flameethrower

So its basically a Honor system with paypal. If you make below the amount paypal wont send the info int othe irs for a 1099 but they expect you to still file on it.


How does state taxes work if all your sales are out of state. I hate taxes and i want to figure this all out before the law goes into effect.

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If your state has income taxes, it doesn't matter if your sales are out of state. As far as I know, you're expected to pay taxes on any income as regulated by your state. You're probably thinking of sales tax.

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Originally Posted by m00kfu

If your state has income taxes, it doesn't matter if your sales are out of state. As far as I know, you're expected to pay taxes on any income as regulated by your state. You're probably thinking of sales tax.

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yea my bad sales tax. My state i have to pay 6% to them from income earnings.

Whats the % the IRS takes in taxes from incomes. Beings paypal will not report anything under 20k/200 payments. How would one file on that with no 1099.

Im not the best with taxes but i want to know about this law as much as possible.

I just got off the phone with the IRS and they said when using PayPal and if your under the 20k they will not be notified about it but you still have to file and pay your 30% tax fee on the profits.

So there for its a honor system for anything thats a small amount done with paypal. Anything above that they said a 1099 will be issued and you will be taxed on that amount on top of your net gain from your actual daytime job.

They said they put this paypal law in effect to stop ebay/paypal sellers form making a lot of money and not paying taxes on it as paypal is offshore. So if your under 20k IRS will not know anything about it unless your a honest person and report it on your taxes.

Keep Voting Democrat and this is what we get.

so the IRS said anything above 20k? what about the 200 transactions? i am confused about the whole deal.

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Originally Posted by redpython

so the IRS said anything above 20k? what about the 200 transactions? i am confused about the whole deal.

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way they put it is 20k and 200 transactions will only be reported to IRS from paypal in order to get the 1099. But some say its either or, but im going to side with the IRS saying its BOTH before PayPal Reports the earnings for that account.

It is confusing for sure, imagine how i felt on the phone when im not a tax expert. But they did say anything below that requirement from the new law Paypal does no have to report it.

So if you made 5k all year through paypal expect to put aside 30-40% of that to pay the state,irs

Make over 20k through Paypal? 1099

Do over 200 transactions? 1099

Make under 20k or under 200 transactions? Honor system to report additional income on taxes.

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Originally Posted by redpython

so the IRS said anything above 20k? what about the 200 transactions? i am confused about the whole deal.

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Originally Posted by 2kdime

Make over 20k through Paypal? 1099

Do over 200 transactions? 1099

Make under 20k or under 200 transactions? Honor system to report additional income on taxes.

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Read the article on the link i posted and itll show you what im refering to.

and yes if your below the new legislation law of 20k and 200 transactions paypal will not report it to the IRS there for leaving YOU to do all the necessary paper work to claim the taxes. So for every sale you make, you need ot set aside 30-40% of that as its now Uncle Sames

I understand what's happening:D

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Originally Posted by flameethrower

Read the article on the link i posted and itll show you what im refering to.

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Originally Posted by 2kdime

I understand what's happening:D

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Its confusing and a PITA and i already suck doing taxes and its just a extra form to fill out for online sales. Gotta love the Government.

You just need a good tax guy:gj:

My guy makes it a breeze.

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Originally Posted by flameethrower

Its confusing and a PITA and i already suck doing taxes and its just a extra form to fill out for online sales. Gotta love the Government.

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Originally Posted by 2kdime

You just need a good tax guy:gj:

My guy makes it a breeze.

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I always did them myself no problems but this year will be first time using paypal for accepting payments for snakes. So i may just have to get a tax guy to help out on it. Most of my snake sales were local or paid by MO.

This isn't news--if you make over a certain amount per year, you need to file taxes. When you file taxes, you must report all income. That hasn't changed at all.
If you fail to report something, and you get audited...boy, will it suck to be you. They WILL find it.

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Originally Posted by WingedWolfPsion

This isn't news--if you make over a certain amount per year, you need to file taxes. When you file taxes, you must report all income. That hasn't changed at all.
If you fail to report something, and you get audited...boy, will it suck to be you. They WILL find it.

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This is news to some since PayPal is off shore and before 2008 no one had to file anything as there was not paper trail. Now the new law requires PayPal to report anyone over 20k in one year and 200 transactions for a 1099. If your under that, paypal does not have to report it, which is where you need to do the paperwork from printing out your profit on paypal.

I never understood that if I raise snakes up as a hobby of mine

Feed em

Breed em

And then sell em....

I have to pay the IRS MONEY?!?!

That's not their money.....

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Originally Posted by 2kdime

I never understood that if I raise snakes up as a hobby of mine

Feed em

Breed em

And then sell em....

I have to pay the IRS MONEY?!?!

That's not their money.....

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It sucks which is why i dont breed many females, i keep it do a certain amount so if i dont want to sell them ill have the room to keep them. If i do sell them i put 30% of each sale away for taxes.

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Originally Posted by 2kdime

I never understood that if I raise snakes up as a hobby of mine

Feed em

Breed em

And then sell em....

I have to pay the IRS MONEY?!?!

That's not their money.....

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If you get a job and go to work and do whatever it is you do, and then get a paycheck... you have to pay the IRS money. In the US we have income tax and you are supposed to pay it on any and all income, regardless of where/how you get that income. There are a few things that are exempt, but I still believe you are supposed to report the income, and then explain why it is exempt.

So, yes, you should be reporting and paying income tax on any snake sales.

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Originally Posted by kc261

If you get a job and go to work and do whatever it is you do, and then get a paycheck... you have to pay the IRS money. In the US we have income tax and you are supposed to pay it on any and all income, regardless of where/how you get that income. There are a few things that are exempt, but I still believe you are supposed to report the income, and then explain why it is exempt.

So, yes, you should be reporting and paying income tax on any snake sales.

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I agree. Even if this business is less profitable than others, a business is a business and income is income and no one should be able to get out of that.

My mother gets exempt income that comes directly from the government, because that's obviously something you can't tax.

If you don't like where your taxes are, donate things to the needy or do various other things that allow for tax deductions. That's what we do.

PayPal is offshore? That's news to me, because PayPal is right down the street from me, here in Omaha. PayPal is now owned by Ebay, of course, and its corporate offices are in California.

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Originally Posted by WingedWolfPsion

PayPal is offshore? That's news to me, because PayPal is right down the street from me, here in Omaha. PayPal is now owned by Ebay, of course, and its corporate offices are in California.

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When i talked to the IRS lady she stated this new legislation was to go into effect to stop Us citizens form storing money in Paypal as they have off shore accounts.

Theres always been Us locations and corporation, but the actual money they said was not stored in any us bank. All this changed back in 08 from what the lady said.

PayPal is a US corporation, but it serves the international community. People are getting Offshore bank acounts with offshore BANKS, and then connecting them to their paypal account to avoid the IRS.
You need to connect your paypal account to an existing bank account in order to use PayPal fully. PayPal is not a bank.

Quote:

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Originally Posted by WingedWolfPsion

PayPal is a US corporation, but it serves the international community. People are getting Offshore bank acounts with offshore BANKS, and then connecting them to their paypal account to avoid the IRS.
You need to connect your paypal account to an existing bank account in order to use PayPal fully. PayPal is not a bank.

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lol yeah my banks pays a bette r% than paypal does now.. I remember when I was getting soemthing like 5 % or more and the bank still payed less than 3 % I was transfering the extra money left over every month to get the extra interest lol.. but that quickly changed. soI not really used mine in a while. I may use it a little for if I sell any future snakes. but the address will have obe verified as well as a letter sent and received back to make sure . I don't want to be getting scammed. I will also have the return return address fro mthe letter so I am covered if they claim not ot get the snakes and I need to file a report. I Know some states require permits and I think I would require a copy of it mailed back to prevent issues later on.(it be a cover my butt plan.. I know in DE any thing over 500 in income taxed and all I thinkI will talk to a h&r block guy this summer and see what I need to do. I know right now I plan on setting up a bank account /debit card strickly forthe reptile related purcahses so if i goto pay tax on it I can show expenses and all. ( as well as write my self a report on what I spent and what for so i have other rescords on hand.)

My thoughts on this are; The more we claim this industry as a legitimate industry by paying taxes, the better off we will all be when it comes to these bills wanting to take our snakes.

this is still a joke. because how many ppl have multiple paypal accounts already?
just how many have accounts not under their own name somewhere else.

also then what are they doing about ppl not in the us that uses US paypal/ebay for us customers? does that get reported?

[/QUOTE] Keep Voting Democrat and this is what we get.[/QUOTE]






:gj::gj::gj::gj::gj::gj::gj::gj::gj::gj::gj::gj::gj::gj::gj::gj::gj::gj::gj::gj: :gj:

Keep Voting Democrat and this is what we get.[/QUOTE]






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its too bad your 100% right on that and about 98% of the rest we would be seeing the same garbage politics

Yes, it's a terrible misfortune for those trying to use PayPal to cheat on their taxes.
Those pesky Democrats, trying to make people pay their income taxes. The Republicans would never do a thing like that. (right)

If you're selling thousands of dollars worth of snakes every year, you have a business and income. If you were selling thousands of dollars worth of clothes, or books, or decorative collectable spoons, it would be the same thing. Pay your taxes like an adult, and when the next ban rolls around we can point to the revenue our industry generates.

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Originally Posted by BabysMomma

If you're selling thousands of dollars worth of snakes every year, you have a business and income. If you were selling thousands of dollars worth of clothes, or books, or decorative collectable spoons, it would be the same thing. Pay your taxes like an adult, and when the next ban rolls around we can point to the revenue our industry generates.

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Who said they werent paying their taxes. This thread is just pointed out for those who didnt know the IRS now has the right to look at all paypal accounts.

I always set 30% aside from each sale for taxes that goes into banks savings account for tax time. Though I rarely use PayPal i deal mostly in Checks, which i still set aside the appropriate amount for tax.

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Keep Voting Democrat and this is what we get.

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Get what? Tougher tax evasion? :P

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Originally Posted by m00kfu

Get what? Tougher tax evasion? :P

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No you get more government laws, and with their hands out for MORE money and taken just that much freedom away. NEW WORLD ORDER.

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Originally Posted by flameethrower

No you get more government laws, and with their hands out for MORE money and taken just that much freedom away. NEW WORLD ORDER.

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But it's not more money, it's the same money that you were already supposed to pay income tax on to begin with. If you were already paying taxes, then this won't affect you. If you weren't, well now you either have to pay like everyone else or risk being caught. I just don't see how it has anything to do with political parties. :confuzd:

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Originally Posted by m00kfu

But it's not more money, it's the same money that you were already supposed to pay income tax on to begin with. If you were already paying taxes, then this won't affect you. If you weren't, well now you either have to pay like everyone else or risk being caught. I just don't see how it has anything to do with political parties. :confuzd:

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Just stating that the Government will find anyway to get money from us period. Just stating i have never liked the government and will NEVER like them for as long as im alive.

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Originally Posted by m00kfu

I just don't see how it has anything to do with political parties. :confuzd:

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Its because it doesn't.

People just want to moan and complain about every FREAKING chance they get.


Annoying as all get out.



Turns an informative thread about Paypal and Taxes into a pissing contest.....AS USUAL