Say what? In the US, anything over $600 requires a 1099. As such, you're already "reported" and have been since the very beginning. Its not like the government has no clue what you've earned. Its all being reported if it exceeds the minimum reported taxable amount. What makes you think they are only now doing this?
I heard about this. Really interesting. Guess we better all keep that in mind. In other news they also started refusing to process donations to wikileaks!
Money moving through the processing networks isn't income, it is only money in transit. Paypal's not actually paying someone that could be considered an income source, they are just transferring their money to them. This would be reported by the person as income on that person or business's tax filings. Paypal's money market fund would have already been reported if a person or business was using it. Until now there has been no reporting requirements at all for Paypal or any other processor.
My bad, I was thinking of the eBay portion of PayPal. e.g. eBay sales as reported by and collected through, the same company.
Not making that much money yet but I imagine a lot of the big dogs will be giving their dues to the government soon haha
This is only applicable to the people living in the US. If you don't live in the US, you don't have to worry about this.
paypal has ALWAYS reported accounts who have received over 10k in payments to the IRS. no one reads TOS fully anymore, do they? lol