Scissor Queen

If you're over 200 transactions it probably kicked their automated request in to action even if you don't meet the dollar amount.

If you don't give it to them they may suspend your account.



Paypal is required by the government to report to the IRS.

CloverPatch

Unfortunatly it IS an either or situation.
They figure if you have received $20,000 in funds OR have received atleast 200 transactions, then it IS a source of income and MUST be reported to the IRS.

I am in the boat of running a personal home business. It will probally be a long... long... time before I make it to $20,000! but!!! 200 is right around the corner and then it will be required.

QKO

Due to the new tax laws that were passed along with the Obamacare bill, Paypal is now required to report all payments over 20,000 per year to the IRS, or report all accounts doing over 200 transactions/year. To do that, they need a tax number from you that id's you to the IRS.

If you don't feel like giving them your SSN#, you can easily apply for and get/use a TID (taxpayer ID number). It's a simple form that you fill out for the IRS, and they issue it for you.

If you're operating a business of any sort, it's a good idea to get a TID and give that to entities you're doing business with instead of your SSN. Any wholesaler you're doing business with will require you to have a TID, so you can buy your supplies and/or resale goods without having to pay retail sales tax on it at the wholesale level.

Sheila_H

Most businesses will tell you that they never ask you for your password or your SSN. It sounds like it's a Scam trust me some are so elaborate that they can copy a business website so it looks like the real thing, they've copied major banks logos, same wording everything. Your best bet is to call Paypal customer service, I've only ever dealt with them once and they were very helpful.

They have all your contact info they would/should contact you directly if they need something like that. Be extremely careful with this.

Fabriholic

There are commercials on TV that tell us not to give out our SS number on-line because no legitimate company would request it that way. TO: Don or Cindy - whoever wrote it - thanks for the tax info on the TID. Good to know.

sharoney

Your TaxID number is not your SS #. It is a number that businesses have for payment of sales tax charged on items sold.

jaciqltznok

No it is AND....

jaciqltznok

I not only get the emails and the BOX at my account, but now they are calling me....I have over 200 transactions, but no where near the $20K yet..and don;t plan to be..

scuttle butt online is that next year it will be mandatory for everyone doing any selling online...state are hurting for tax revenues!

blueangel

I would call them to make sure.

Scissor Queen

Your tax ID number can be either a SS number or an EIN. Your EIN comes from the federal government and doesn't have anything to do with sales tax. Your sales tax number comes from your state.