Paypal Requiring Tax ID Or SSN

[Goneped]

Hello all! I have a huge problem on my hands.

I have had a banned eBay/Paypal account in the past. With my current account I am using, it uses my real address and real last name. But my first name is simply a nickname. I logged on to Paypal today to find out that they are requiring either my SSN, or upgrade to business account and proivde EIN, or provide a Tax ID.

What is my next step here? I want to make sure I am doing the right things as far as the IRS. Do I have to change my first name atleast to a nickname of my real name? Please any information on what to do would be tremendous and god bless. I truly do not want to lose my paypal or eBay account at the same time not to be tackled by IRS.

 

[toml3030]

I have had a banned eBay/Paypal account in the past. With my current account I am using, it uses my real address and real last name. But my first name is simply a nickname. I logged on to Paypal today to find out that they are requiring either my SSN, or upgrade to business account and proivde EIN, or provide a Tax ID.

What is my next step here? I want to make sure I am doing the right things as far as the IRS. Do I have to change my first name atleast to a nickname of my real name? Please any information on what to do would be tremendous and god bless. I truly do not want to lose my paypal or eBay account at the same time not to be tackled by IRS.

IRS allows you to get ONE EIN personally for tax reporting purposes. I suggest you take advantage of it. Chances are paypal won't link just the nameholder of the EIN to a banned account unless you're doing something highly shady.

 

[nnahlee]

You can trying adding ein but that is more paypal business accounts.

 

[Euphorix]

Easy fix. Start a legal business and get a working tax ID: They'll lift your holds

 

[Goneped]

Thank you all for the fast responses! So are you suggesting Tax ID or EIN?

It seems if I go with EIN i have to upgrade to a business account which when I do that it says my account is on limited status to call paypal to work that out.

I've always had a personal account and never went beyond the limit of 200 sales on my previous banned accounts.

So with all that being said as well. What about my first name I am using on paypal and eBay. Like I said I am using my REAL address and real last name. So what do I do about the IRS using a phony first name through paypal?

 

[Goneped]

IRS allows you to get ONE EIN personally for tax reporting purposes. I suggest you take advantage of it. Chances are paypal won't link just the nameholder of the EIN to a banned account unless you're doing something highly shady.

So call paypal to setup business account? Then use real name on EIN with IRS and still have fake first name on Paypal?

 

[Alexis Rodriguez]

Just use LLC's or S-Corps

 

[Goneped]

Okay again thank you for the responses everybody. So when I file the paper work for LLC what are the chances paypal will check background and ban me for having a my real name on LLC from a banned paypal account and my current paypal account with a phony first name?

 

[toml3030]

Okay again thank you for the responses everybody. So when I file the paper work for LLC what are the chances paypal will check background and ban me for having a my real name on LLC from a banned paypal account and my current paypal account with a phony first name?

the chances of them going back and researching the ownership of LLC and linking it to a banned account is small unless you start moving MASSIVE, like $100K a month+ through your paypal. However, if you do it right, you can set it up so that no one knows the true ownership of an LLC. Before you do this you might want to research because in some states like CA, it costs like $1,000 a year to maintain an LLC.

 

[toml3030]

So call paypal to setup business account? Then use real name on EIN with IRS and still have fake first name on Paypal?

In my experience paypal won't care if your paypal name and LLC name don't match, as long as you give them a valid EIN that is confirmed as validv with the IRS.

 

[toml3030]

Thank you all for the fast responses! So are you suggesting Tax ID or EIN?

Tax ID = either your SS# or a valid EIN.

So what do I do about the IRS using a phony first name through paypal?

IRS won't really care if proper taxes are filed through that EIN. IRS allows one EIN per person to run a sole proprietor business or for paying household help.

 

[Goneped]

Tom thank you for massive help along with everyone else!

So, I live in Ohio. I see a bunch of places asking for $79 etc. to signup for LLC? There is a cost to setup and run the LLC (fees have to be paid to run it)?

Also benefits/cons between LLC or S-Corps as mentioned earlier?

 

[toml3030]

So, I live in Ohio. I see a bunch of places asking for $79 etc. to signup for LLC? There is a cost to setup and run the LLC (fees have to be paid to run it)?

Yes, each state has a fee. In CA it's $850 per year. You can also choose which state to incorporate in. Some states like Wyoming has vary favorable incorporation law. IIRC all states require that no matter what state you are incorporated in, you must register with the state you do business in. For example, if I'm in CA and run a WY corporation, I owe both WY and CA fees to maintain a corporation.

Also benefits/cons between LLC or S-Corps as mentioned earlier?

S Corp = stockholders must be separate individuals. Profits must be shared in proportion to % stock ownership. More record keeping. S corp lasts forever until dissolved. May have tax savings because you can pay yourself a salary and treat yourself as an employee.

LLC = = no restriction of ownership. owners can be other LLCs and foreigners, profits can be shared any way partners agree. LLC's dissolve upon certain events, such as a partner dying

 

[Goneped]

Wow I bow down to you Tom. Thanks for the great info. I am still stuck though as far as I have to upgrade to business account on paypal, when I do so it says my account is currently limited (due to the tax additional info.) call us at our resolution department.

Do you have any experience with such a event? What am I to expect them to ask of me? Mind you I have called them once on this account as well as eBay and so far I have been flying smooth as a bird *Knocks on wood*

 

[toml3030]

Do you have any experience with such a event? What am I to expect them to ask of me? Mind you I have called them once on this account as well as eBay and so far I have been flying smooth as a bird *Knocks on wood*

Frankly, I don't call in to resolve paypal issues too much because I ramp up accounts slowly (I age them up to 1 yr+ selling low $ items before I scale up), and I don't sell anything risky. When i called in they asked for a copy of the driver's license and such, but it was never a big deal and I have never gotten into more trouble as a result of calling in. You can always abandon paypal accounts if you sense too much heat. I find that paypal reps are generally more trained than eBay reps.

 

[Goneped]

That makes me nervous, my ID would be automatic ban I feel like or if they ask me questions why my first name is different? This is all for a business account? I typically am selling $30 and below on average. I've sold about 40 $10 items just past few days on eBay. I am hoping they would see the business I bring and turn their head, the rep. that is.

But yes i noticed as far as reps for eBay late at night is typically third world country reps which go by book terms *I can hear them pause at times* just few days ago during the day i called them and sensed a non-foreign accent.

 

[Euphorix]

That makes me nervous, my ID would be automatic ban I feel like or if they ask me questions why my first name is different? This is all for a business account? I typically am selling $30 and below on average. I've sold about 40 $10 items just past few days on eBay. I am hoping they would see the business I bring and turn their head, the rep. that is.

But yes i noticed as far as reps for eBay late at night is typically third world country reps which go by book terms *I can hear them pause at times* just few days ago during the day i called them and sensed a non-foreign accent.

eBay does a lot of their customer support out of the Philippines. Quick get-around= Look up the power seller customer support #.

 

[toml3030]

That makes me nervous, my ID would be automatic ban I feel like or if they ask me questions why my first name is different?

Unless you have a rare name like Virgilio Amadeus Monsterdong IV, Esq. or you used previously banned address for your new account, chances are that they're not going to link what you give out on the driver's license to your new account. Just say your eBay account name is your middle name and that's what you've been going by your whole life. Remember eBay WANTS sellers and they will error on side of caution unless you give yourself away through a mistake. This is why proper account creation is important.

 

[Goneped]

Last question the Tax ID portion Paypal wants me to fill out just that. Are you sure I shouldn't go that route? From what I see it says just that then "submit" button. Is there a high chance of linking through Tax ID?

 

[toml3030]

Last question the Tax ID portion Paypal wants me to fill out just that. Are you sure I shouldn't go that route? From what I see it says just that then "submit" button. Is there a high chance of linking through Tax ID?

How would they link you through just the tax id unless you try to link the same number to multiple paypal accounts? As I said above, it is POSSIBLE to do so if they spend $ to go outside what they normally do, but unless you become the Fake Shoe King of eBay of something, chances of them doing so is not that high. Normally all Paypal does is verify that tax id or SS# is legit and notify the IRS that tax ID has received this much $ each year. As long as you file taxes on that tax ID and do not run massive scams neither paypal or IRS has reason to dig further.