paypal, SSN, IRS

Discussion in 'PayPal' started by kuntul, Apr 12, 2009.

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  1. #1
    Do you think that paypal frequently report the money I have in my account to IRS constantly?? As I have my bank account tied in there and so is SSN.. I never withdraw to my bank account though.. the balance I had there is less than 10K.
     
    kuntul, Apr 12, 2009 IP
  2. thekiller12

    thekiller12 Peon

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    #2
    i dont think they do
     
    thekiller12, Apr 12, 2009 IP
  3. kuntul

    kuntul Peon

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    #3
    and the reason?
     
    kuntul, Apr 12, 2009 IP
  4. digitalpointdevine

    digitalpointdevine Peon

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    #4
    Only your taxable income is reported to IRS. PayPal has no idea whether the money one receives or send is taxable.
     
    digitalpointdevine, Apr 12, 2009 IP
  5. kuntul

    kuntul Peon

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    #5
    so paypal has no idea whether the money I received is taxable or not? if they do know.. how could they know?
     
    kuntul, Apr 12, 2009 IP
  6. tobycoke

    tobycoke Well-Known Member

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    #6
    PayPal does not currently report your transactions to the IRS because you are not earning money from PayPal. Paypal is just the payment processor. Your income is from your clients who use PayPal as a payment method.

    However, there is legislation starting in 2011 that will require payment processors to report to the IRS.

    http://www.auctionbytes.com/cab/abn/y08/m08/i06/s01
     
    tobycoke, Apr 12, 2009 IP
  7. Somnus

    Somnus Peon

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    #7
    What if you dont report,whats the worst thing that can happen?
     
    Somnus, Sep 21, 2010 IP