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Paypal Tax Question !!!

Discussion in 'Business & Tax Advice' started by Basoon123, Jan 4, 2014.

  1. Basoon123

    Basoon123 Newbie

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    Lets say my total amount of transactions is 50 and total sold is $15,000 from August 2013 to December 31 2013. Paypal says they only report to IRS if its 200 transactions and $20,000 within one year

    Considering that now is January 3rd 2014 and a new year does that paypal still keeps track of this 15k and will wait until i accumulate to 20k and report my earnings or since this is a new year the amount is reset and not have to worry about another $5,000 of earnings?
     
    Last edited: Jan 4, 2014
  2. tony_d

    tony_d Elite Member

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    I think you'll find that's a yearly total - however, you'd want to check when their fiscal year starts and ends.
     
  3. nokran

    nokran Newbie

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    Assuming you're referring to the new IRS 6050W requirements, the total gross sales are calculated per calendar year.

    More information can be found here:
    http://www.paypal.com/irs

    I hope this helps! :)
     
  4. Ste Fishkin

    Ste Fishkin "I'm watching you.." - Apricot Jr. VIP Premium Member UnGagged Attendee

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    why not just pay your fucking tax.
     
  5. BusinessMagnet

    BusinessMagnet Power Member

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    As the above poster said, refer to this article :

    Code:
    https://cms.paypal.com/us/cgi-bin/marketingweb?cmd=_render-content&content_ID=marketing_us/IRS6050W
     
  6. burnett4congress

    burnett4congress Jr. VIP Jr. VIP Premium Member

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    I wouldn't count on that reporting threshold. The bank secrecy act [sic] basically gives government agencies complete access to bank records.
     
  7. Ste Fishkin

    Ste Fishkin "I'm watching you.." - Apricot Jr. VIP Premium Member UnGagged Attendee

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    He's saying this like the NSA don't track paypal payments anyway...

    What world do you like in OP.