Ways to avoid 6050W

For those who aren't familiar with what this is: https://cms.paypal.com/us/cgi-bin/marketingweb?cmd=_render-content&content_ID=marketing_us/IRS6050W

Does this apply to all payment processors that are US-based?

Is it possible to use an offshore payment processor (like Liberty Reserve which is based in Costa Rica) that accepts paypal payments and not be subject to 6050W?

If not then how can I avoid having my online transactions be reported to the IRS?

wow. all im saying is everyone should get in right now wherever they can and bank until its impossile to do so. getting harder and harder.

Yes I do believe that it applies to all US based payment processors.

You do know that whether or not you reach the threshold you are required to report your online income anyway, right? This rule does not make any changes to the way you are required to file your taxes, the only thing it does is make it harder for people to cheat and not pay.

Remember you do not pay taxes on your gross but on your net after all your expenses. There are just way too many gray areas in the tax code that allows you to deduct expenses to make it worth evading them altogether. The IRS does not play and if they catch you (which is getting easier and easier) they will freeze every bank account you have and make your life seriously suck.

fuzzy_corleone said:

For those who aren't familiar with what this is: https://cms.paypal.com/us/cgi-bin/marketingweb?cmd=_render-content&content_ID=marketing_us/IRS6050W

Does this apply to all payment processors that are US-based?

Is it possible to use an offshore payment processor (like Liberty Reserve which is based in Costa Rica) that accepts paypal payments and not be subject to 6050W?

If not then how can I avoid having my online transactions be reported to the IRS?

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