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I was an idiot and PayPal is an asshole

Discussion in 'Business & Tax Advice' started by SEOMemj, Oct 4, 2016.

  1. SEOMemj

    SEOMemj Jr. VIP Jr. VIP

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    I started using PayPal a lot more this year compared to other years due to my BST as well as consulting more with people rather than business owners.

    This year I'll have around $15k-$20k received on my PayPal (it's a legit account). No big deal until - like a moron - I remember that while this account is set up with all of my email & bank accounts, all the info is under my mother's name as it's like a 7-year-old account back from when I was a minor.

    I know PayPal reports your income after ($10k I think) a certain point but with everything under my mother's name and not mine, I don't want to create an issue for her.

    I tried changing the name via the PayPal UI but I have to provide proof of a name change and I couldn't find a way to indicate otherwise.

    I emailed support and they provided me with a step-by-step process for doing so. However, their process is out of date as the screenshots they provided were of options that don't exist anymore. So I call, basically got the same thing emailed to me and now support won't respond back to me and when i recall I'm passed from call worker to call worker.

    What can I do so that I don't end up fucking my mother over?
     
  2. mzonas

    mzonas Jr. VIP Jr. VIP Premium Member

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    Can't you create a new PayPal account under your actual name? Try slowly withdrawing cash from old account into your mum's bank account, ask her to hand the money over ... or something?
     
  3. Motherdex

    Motherdex Regular Member

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    I don't love Paypal so assuming that they never help you rectify this and you don't want to open an account under your own name (since you wouldn't want to start from scratch with limits and whatnot) you could pay for an accountant to handle your mom's taxes with the extra reported amount of your income and then pay the difference in her taxes to keep everything on the up and up. I am assuming that is the issue you are referring to where she would have income on the books with Paypal that she may not report in her taxes?
     
  4. eunicemartinez_21

    eunicemartinez_21 Jr. VIP Jr. VIP

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    I don't get it what's your problem with using your mom's name and why would she be fucked up? Unless you are doing some shady stuff to accumulate that money then you definitely have a problem.

    I also used my mom's name on PP. I used it for about 7 years and didn't have any problem. But I just recently open a new PP under my name.
     
  5. BassTrackerBoats

    BassTrackerBoats Super Moderator Staff Member Moderator Jr. VIP

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    I think PP reports at 20K but forget that; open an account with 2Checkout and you'll be in good shape.
     
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  6. dhia27

    dhia27 Jr. VIP Jr. VIP

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    2CO also reports at 20K AND 200 transactions being made in a given year (They will deamand you to fill 1099-K form). I am not sure if this "AND" criteria is applicable or not !
     
  7. camillebeaute

    camillebeaute Junior Member

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    paypal will report at 20K , but they can ask you to fill the tax form before if your earnings grows fast.
    call tehm, call them again, and again and again, until you find someone less stupid than paypal average employee, this can be done in 5 minutes, but paypal like long stories...
    Make 2 - 3 backup stealth paypal accounts as you don't know when they will decide to ban your account, and you will thanks me when this will happen
     
  8. camillebeaute

    camillebeaute Junior Member

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    in fact it's "OR"
     
  9. AceWallGromit

    AceWallGromit Regular Member

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    Be a good boy and pay your mamas extra taxes that you may cause her. Don't be mad at PayPal.
     
  10. BassTrackerBoats

    BassTrackerBoats Super Moderator Staff Member Moderator Jr. VIP

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    I did a poor job sharing: OP get a 2CO account in your name and move forward with your business.

    Should any tax issues arise for your Mom, of course handle them for her as that is your liability.
     
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  11. plugmaster

    plugmaster Regular Member

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    make your own account.
     
  12. dhia27

    dhia27 Jr. VIP Jr. VIP

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    @BassTrackerBoats so, it's an "AND" or an "OR" !!
    @Rest of the world (and BTB): They (in fact, IRS) also claim that international sellers outside the US are not exempted from filling this form if they are using USD in transactions. So, they pay taxes to IRS or what ? other people say that you can tell them that you are not a US citizen and you will be simply exempted.
     
  13. rabbitking

    rabbitking Elite Member

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    Depending on her tax bracket you could just leave it be and pay that share of taxable income. It's actually a good idea to
    diversify earned income, oh yeah legitimately that is. :cool:

    Since PayPal is so finicky I would not make any drastic changes while your money is tied up. You can plan for a more permanent solution later.
     
  14. REAL EMAIL ID

    REAL EMAIL ID Jr. VIP Jr. VIP

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    I think It is only for US Paypal account not for all.
     
  15. camillebeaute

    camillebeaute Junior Member

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    Yes, I had to fill the form for all my paypal accounts , but as I am not US citizen, I don't pay Taxes to USA, as simple as that. It's possible to lie only if your account is not linked to a US bank of course
     
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  16. NobelNerd

    NobelNerd Power Member

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    twitter they answer that shit if you keep bothering them..
     
  17. HoNeYBiRD

    HoNeYBiRD Jr. VIP Jr. VIP

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    This.

    Just pay the taxes, if they were yours. If your mother is fine with this, i don't really see any issue.
    I wouldn't try creating another account, because you only risk your already existing account.
    I guess you can keep calling them until you speak to someone, who can actually help, but if that never happens and PayPal can't seem to help with the name change, you're stuck either way and you need to sort this out with your mother.

    https://webcache.googleusercontent....ttps://www.paypal.com/selfhelp/article/FAQ729
    https://www.paypal.com/us/webapps/mpp/irs6050w
    Since 2011, PayPal has been required by the IRS to report the sales of goods and services for customers who, in a single year receive:
    • More than $20,000 USD, AND
    • 200 or more payments.
     
  18. RuthSam

    RuthSam Jr. VIP Jr. VIP Premium Member

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    If the account is in your mothers name then just open a new account in your own name. what's the problem?