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Does Paypal track taxes?

Discussion in 'Business & Tax Advice' started by juice, Feb 26, 2010.

  1. juice

    juice Regular Member

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    If I am accepting payments on paypal, will the IRS be able to track this? Does Paypal report the amount of income earned?
     
  2. mcgraw

    mcgraw Newbie

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    ya. the government can call them up to ask for transaction details
     
  3. nojrellum

    nojrellum Newbie

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    PayPal = online paper trail
     
  4. juice

    juice Regular Member

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    But they don't distribute a 1099 or anything to the IRS right?

    Also, since paypal is an 'online paper trail' do you guys use a different payment system?
     
  5. hotwicked

    hotwicked Regular Member

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    If you have never entered a SSN or EIN, it would be rather hard for PP or the IRS to track anything with regards to the account. Use their PP debit card and cash is cash.
     
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  6. Qokaine

    Qokaine Regular Member

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    i think in 2012 i read that they'll report taxes, not exactly sure.
     
  7. juice

    juice Regular Member

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    Thanks! This is what I plan on doing. I figure this is one of the best options right now (instead of depositing massive amounts of cash into your bank account).