IRS Paypal for Non-US

Hello,

so, first thing, I am not living in US. But I have an LLC company incorporated in Delaware. I have a Non-US paypal account for many years. The problem is that this year Paypal will ask me if my entity is a US entity or not. They sent me an email saying that every 3 years they will ask me so. I have EIN for my company. But every year when I file the tax delcaration to IRS I say I had no US customers so I have never paid taxes.

Now if I will give me EIN to Paypal, will they send to IRS my income? But will they also specify if it is from US customers or not? In this case it will be a problem sooner or later since IRS will see the discrepancy between my delcaration and Paypal's.

Any suggestions?

I also have a non US company, I could change my Paypal from the US company to a non -US company. But having the US company is good for customers, it looks more legit.

Thank you for you advices!

shacky said:

Now if I will give me EIN to Paypal, will they send to IRS my income?

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Yes, they will send a copy of your total payments received.

shacky said:

But will they also specify if it is from US customers or not?

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No. If that makes a difference in US taxes, you declare it on your tax return.

shacky said:

In this case it will be a problem sooner or later since IRS will see the discrepancy between my delcaration and Paypal's.

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Yes it will.

shacky said:

I also have a non US company, I could change my Paypal from the US company to a non -US company. But having the US company is good for customers, it looks more legit.

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Well, if you want to have a legit US legal entity, you should file US tax return, even if you have no cash tax liability.

If you don't have US customers, why do you want a US business? Legal entities elsewhere offer much more freedoms and less legal restrictions. What advantage are you getting by subjecting yourself to US laws and US taxes?

SOWEIRD said:

If you don't have US customers, why do you want a US business? Legal entities elsewhere offer much more freedoms and less legal restrictions. What advantage are you getting by subjecting yourself to US laws and US taxes?

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Who said I don't have US customers?