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

1337Teh

1337Teh

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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:

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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
 
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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.
 
punygod said:
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.
Click to expand...

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"?
 
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
 
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!
 
mrblackjack said:
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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Thank you for your reply, by the way, does it matter if the PayPal account is Australian? Can IRS Tax australian paypal accounts too?
 
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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.
 
haki_master said:
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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I hope it is as you say, currently i got 203 transactions and $300 on my paypal account
 
1337Teh said:
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"?
Click to expand...

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)
 
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