As stated in previous post, i found out that paypal only reports how much you make to the IRS if you receive more than $20,000 in payment volume in a single year AND receive more than 200 payments in a single year. So was just wondering is this true and does this apply for affiliates that receives their commission through paypal? Source: http://blog.auctionbytes.com/cgi-bin/blog/blog.pl?/pl/2008/8/1218129000.html https://www.thepaypalblog.com/2008/08/proposed-irs-reporting-requirements-become-law/ http://ebayinkblog.com/2008/08/06/online-sellers-officially-on-irs-radar/comment-page-2/ more source if you search on google
I'll try to explain this as simply as possible. As of right now, PayPal does NOT report earnings information to the IRS. However, should you happen to raise some red flags with the IRS and they decide to audit you, they can easily obtain that information from Paypal. The $20,000/200 payments thing won't go into effect until 2011 and the affected people will need to claim any amounts over those specified thresholds in 2012. Yes, for right now, you can get away with not reporting on your PayPal income, but it is not necessarily ethical and could potentially get you in trouble if you end up on the radar of the IRS somehow.
Exactly.... scar has rightly mentioned that it is not ethical to hide details and you cab be into serious troubles for that....
I made $104,000 US per year through paypal about 6 years ago. Never paid any tax, whoops did i just say that out loud? No one said/asked anything