I'm in the Dominican Republic right now. I just moved in from Belgium (though I'm not Belgian - I was born in the US) The IRS can't touch me here, and PayPal isn't very known here (only two out of about 8 banks know what PayPal is) so the government here doesn't even know what PayPal is. That's why I say I would never be caught. Furthermore, I can't withdraw funds to a bank here, so I use Xoom.com to bring the money to my doorstep. And I suppose having ties to the government helps a little as well. After all, they provided me diplomatic immunity during my time in Belgium so I didn't have to pay the high belgian taxes (40% of your income + 21% sales tax = 61% taxes plus if I had my online business(es) registered at belgium (didn't have to, again diplomatic immunity + being a non-permanent foreigner), I would've had to pay 75% or so total in taxes! and banks pay the taxes automatically, so I wouldn't be able to do anything about it!) but again I'll pay them, as I've said about 4 or 5 times now.
usa paypal reports your interest from cash in the account that they pay you to the irs electronically on a 1099 form.so right there the irs will know you have a paypal acct.It doesnt prove how much you sold but it sure is a nice clue! with that they can triangulate back from the interest payed in a yr the average balance in the acct.Since most people don't leave quantities of money in the acct just for purchases...get the idea?!!!
Because you are planning on moving back you should pay it. Are you currently paying any taxes to the U.S. government or just to the country where you are living? The IRS keeps records and they know a lot more than you think. Just because you are living abroad does not mean you are 100% safe.
No, I'm just paying the taxes where I currently live. Actually, my PayPal account isn't an US account, it's a Dominican account. Back in Belgium, I had a Belgian account, and when I move to the US, I'll open/transfer my account to the US. As for the IRS records, I moved out of the US before I was required to pay taxes, so I don't think they have any records on me... all my family has paid their taxes, as far as I can remember...
Oh in this case, you should not worry. Just pay the Dominican Republic, but they might not care as much.
paypal is an american billion dollar corporation, they most certainly know what is going on in your paypal account. you think becasue your in dominican republic what?.. that protects paypal corperate office from looking in your account?? LOL!! think again! what financial institution have you ever known with as much revenue running through it in the history of the world in which "government" authorities werent involved in some way? i rest my case LOL
sigh... read the thread entirely before posting... so you're implying you know the dr better than me? don't make me laugh...
i did read the entire thread, whats your point exactly? your saying that paypal or government would in no way know that you were making huge amounts and not claiming them BULL they will know it might take them a few years to get off their lazy asses and actually do something if thats what your implying LOL
My government would never find out. Really. This coming from someone with (somewhat) strong ties to it. FYI (to everyone), I met someone at some event who works at the DGII (Direccion General de Impuestos Internos, in Spanish, which is the agency who controls internal taxes), and explained her the situation. She had no idea about what PayPal was, so I explained it to her. She told me income taxes are only applicable to registered, internal jobs. This means that, even though my PP account is a dominican account, I don't handle any dominican customers. Even if I did, my websites/services aren't registered as dominican businesses. Therefore, my PayPal income doesn't apply for income tax. Also, income tax is only applicable to those who either owns a company, or has a job approved by the National Secretary of Employment for those who work inside the country. If my business is registered elsewhere, I have to pay the host countries' taxes. Because my websites aren't registered as businesses, I don't have to worry about this. She told me, however, that if I ever start a website that I register as an official dominican business, it was my duty as a citizen to declare my PP income, even if it isn't in my bank account yet. She also told me that if I register a site as a dominican business, but I only handle international customers, I probably should speak with someone at foreign affairs. She pointed me to someone who turned out to be my cousin . I'll give him a call tonight and update
Well, I would think that in your status in society is difference from us mere mortals because of your diplomatic immunity status. Most of us do not have that and are subjected to the laws of the land and can be prosecuted if we do things against the law. It helps a lot in life if you have royal blood or belong to the upper crust of society.
i will say theres a very slight possibility of this being genuine , and i would in fact be glad if its possible and a true situation for you, but you still must remember you are dealing with an @$$hole corporation (excuse my language) that will viciously go after people they think are trying to screw them over even for one measly dollar! and by all means paypal will most certainly abide by all regulations consistent to US authorities and regulations. i just simply dont see how its possible in anyone elses eyes given our experiences and knowledge from every single other paypal country.
I do not see what PayPal (and their @$$hole) has to do with this... The only thing that PayPal could care for in this case is to report to the particular authorities some financial information. If this authorities do not care to collect taxes based on such information I don't see why PayPal should do anything else (including "viciously go after people").
I don't think so. Most probably you're misunderstanding something... PayPal has no reason to care whether somebody pays taxes because PayPal has not any profit from these taxes. If PayPal has reported to the authorities your income and the authorities don't care it's not PayPal's business to force the authorities to collect taxes on that income.
and you think after that happens paypals just going to sit their and continue to let the guy avoid authorities and not limit his account so he can continue to evade tax? what planet are you from? please take me to your leader
i know paypal wont waste no money on him, im saying they would lock his account and be done with him if any of that ever happens, that was my whole point LOL sorry maybe i didnt present the right way im saying if he did not report his taxes and it turns out that it is illegal and authorities wanted him to file taxes on it then paypal will most certainly lock his account until he complies like i asked before, you think paypal would continue to let him do business in their name under those circumstances do you?