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PayPal Tax Verification Issues - Will PayPal specifically know who an EIN belongs to?

Discussion in 'Ebay' started by koox2, Sep 16, 2014.

  1. koox2

    koox2 Newbie

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    Hi all,

    Hoping someone can help.

    I have three eBay accounts, thus three PayPal accounts and I don't want them linked.

    One of the PayPal accounts is in my name with my SSN attached, the other is in my wife's maiden name with her SSN attached and the third account does not have a SSN attached to it and PayPal is asking for one. PayPal has also stated I can provide an Employer Identification Number (EIN) or an Individual Tax Identification Number (TIN). I guess I could get an EIN but they are ultimately linked to a SSN. If I were to get an EIN (which is linked to my SSN), will PayPal know who the person is that the EIN is linked to?

    Also, is there another way around this?

    Thanks in advance.
     
  2. wickid

    wickid Junior Member

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    While I am not 100% certain of this, I highly doubt PayPal has the resources to track an EIN back to a SSN for the registered business owner. Depending on the business type as well I am not sure if a SSN is really needed. LLC and Corps I do not think get tied back to an individual's SSN; whereas Sole Prop and Joint Businesses typically would.
     
  3. jmt123

    jmt123 Regular Member

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    No, the IRS does not give out that information. When you get an EIN and add it to Paypal, Paypal asks two simple yes/no questions to the IRS - does the business name given to Paypal match the IRS's records, and does the business address match? If yes, then you pass. If not, then it's rejected. Note that even very minor differences are rejected - the business name and address must match exactly.

    Once you get asked to provide that information because you became close, or went over 200 transactions/$20,000 then your account will eventually become limited if you don't provide that information. It will be restored whenever you add an EIN number, or you can wait until next year and the limitation will be removed without having to do anything.
     
  4. toml3030

    toml3030 Elite Member

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    I'm not sure that the addresses have to match. A lot of businesses have a legal address and dba address. For example if you take out an out of state LLC or Corp, you can put your registered agent's address as the legal address with the IRS but not as the address of record with eBay.
     
  5. toml3030

    toml3030 Elite Member

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    EIN is linked to a SSN only in the eyes of IRS and IRS would not release that info to eBay without a court order. They could probably find out if you operated as a sole proprietor or single person LLC.
     
  6. jmt123

    jmt123 Regular Member

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    When you apply for an EIN, the IRS asks for where the business is physically located and also asks if you want documents mailed to a different address. I believe that the physical address is the one that should match what's on your Paypal account, even if the physical location of your business is different from the address you used to register it with your state.

    Though I certainly could be wrong because I'm far from a tax expert and I've always made certain that the addresses matched up. I'm pretty sure the business name needs to be exact, at least.