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3 Year Old PayPal, do i have to pay taxes?

Discussion in 'Business & Tax Advice' started by 1337Teh, Aug 18, 2013.

  1. 1337Teh

    1337Teh Regular Member

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    Well, like 3 years ago i somehow managed to verify my fake paypal account, and i've been using it since then. I've made a lot of transactions and stuff. I started wondering today if they will start looking for the real me to pay taxes and stuff. My paypal is from Australia but i live somewhere else. I checked paypal help documents and i saw this:

    [​IMG]

    One thing i didn't understand is: Does it say they report taxes if you RECEIVED more than 200 payments or it's a mix of received and sent payments?

    Thanks
     
  2. punygod

    punygod Newbie

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    I also have an Australian Paypal account.

    If its small amounts, they will not care but if you are receiving larger amounts which is being transferred to your bank yes you must pay tax.
     
  3. 1337Teh

    1337Teh Regular Member

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    Nope, NOTHING is transfered to my bank. I use that paypal account to buy online stuff (Domains/services/etc). How much is the "Larger amounts"?
     
  4. mrblackjack

    mrblackjack Jr. VIP Jr. VIP Premium Member

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    Paypal wont report you unless the IRS will asks them for info about you. Now, the IRS wont asks for info unless they suspect you, or are witnessed to suspicious money-transfers to your bank account. Such transfers wont raise red flag unless they are frequent and of high volume. If you dont transfer money to your bank account, the IRS wont be able to know you even have a Paypal account thus, in your case, you haven't paid taxes for 3 years simply cause the IRS doesnt know about your payapl account
     
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  5. dkwholesales

    dkwholesales Regular Member

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    Hello,

    There seems to be some bad information here.

    It is really simple.

    If you have received over 20k that year or completed over 200 transactions then this information is reported/sent along with your 1099-k form to the IRS, as that is then required on your tax forms.

    Good luck!
     
  6. 1337Teh

    1337Teh Regular Member

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    Thank you for your reply, by the way, does it matter if the PayPal account is Australian? Can IRS Tax australian paypal accounts too?
     
    Last edited: Aug 18, 2013
  7. SkyrocketSEO

    SkyrocketSEO Jr. VIP Jr. VIP Premium Member

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    Dude, I think you're totally confused. By the way, it is not IRL
     
  8. 1337Teh

    1337Teh Regular Member

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    I ment IRS, sorry about that.
     
  9. haki_master

    haki_master Regular Member

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    For US citizens as it states you must have either over 200 transactions or over 20k in yearly transactions for paypal to give a report to IRS.I doubt you ll have to pay anything as taxes as the account is stealth and if you managed it properly and its not linked to any real information of yours they cannot find you.
     
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  10. 1337Teh

    1337Teh Regular Member

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    I hope it is as you say, currently i got 203 transactions and $300 on my paypal account
     
  11. raghav

    raghav Power Member

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    Are you from India?

    I don't think you need to pay tax as you are not withdrawing the amount to your bank.

    I am from India, I am using another country's paypal account for paying others to save transaction and conversion fees (As we have to pay using CC and not from balance)