Sorry if this was covered in a recent post. Was to lazy to search through the thousands of pages that show up when I search "paypal" Anyways.. Is the money that goes through PayPal taxed? For example, if I were to have $1,000+ to go through my paypal account this year, does PayPal notify the IRS and I have to pay whatever taxes there are? Or are there only taxes on things such as AdSense and YPN?
The issue is not so much if Paypal income are taxable but rather is income in general taxable in your country. In most countries, if you earn an income through any means, you are required to declare them as income for the purpose of taxation. The onus to pay taxes lies with you. Paypal will only declare their own income to IRS. In short, whether the income goes through Paypal or not, you are required to declare them. If you are unsure, check with your country's Tax Department.
Paypal does not send this info, but would provide it if requested. No all money going through paypal is going to be taxable. However, if you were getting audited and the government suspected you were hiding income they would certain request information from paypal about your transfers.