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Why is Paypal wanting Tax information after all this time?

Discussion in 'Business & Tax Advice' started by stfrank, Sep 24, 2014.

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  1. stfrank

    stfrank Jr. VIP Jr. VIP

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    I have had Paypal for 2 years. I tried to switch to business account, then it wanted tax information. So I switched back to personal account and it still wants tax information. How do I avoid being required to give tax information?
     
  2. tas26

    tas26 Power Member

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    never happened to me, better you call them and ask them to fix it for you. r provide the required info.
     
  3. warner410

    warner410 Regular Member

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    Paypal is asking for your PAN? You don't have one?
     
  4. aqibarif74

    aqibarif74 Jr. VIP Jr. VIP Premium Member

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    I think they are asking to you SNN or something else right?
     
  5. BassTrackerBoats

    BassTrackerBoats Moderator Staff Member Moderator Jr. VIP

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    The rule used to be 200 transactions and 20,000 a year in business and they needed tax info.

    Perhaps you hit those thresholds.
     
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  6. gullsinn

    gullsinn Jr. VIP Jr. VIP Premium Member

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    I guess so, you need to submit your National Tax Number to them that you pay taxes for all activities.
     
  7. EDION

    EDION Junior Member

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    If you're from the US, just go and open a company (you'll have to pay a lot less in taxes). It's better you have a company when you want to earn big with IM, the last thing you will want is the IRS on your ass, this is why I'm opening a small corporation next month.
     
  8. Advancing

    Advancing Newbie

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    You are getting close to the 20,000 gross payment volume or 200 payments for goods or service. Paypal will take preliminary actions when you get close to either one of these levels to protect themselves from IRS.

    If you have not gone over either one of the levels, although you have a limitation, you should still be able to make normal transactions. The limitation that comes before you reach that amount basically means you can't close your account, but you can still do what you need to do.

    So here are your options:
    1. Provide tax id or ssn. You will need to provide this if you want to close the account, or if you go over the levels.
    2.Slow down on your transactions, and wait for the year to be over. January 1st your levels will basically reset and your limitation will be removed, as long as you have not gone over the levels.
     
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  9. ZennoBlaster

    ZennoBlaster Senior Member

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    This is why I spread out sales amongst several accounts.
     
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  10. Advancing

    Advancing Newbie

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    Exactly. If a person is not providing SSN or Tax IDs the only thing paypal has left is your phone number and bank account. They can't really base much off name because there are people who have common names. So if you are in the United States, you can go to your local bank or even better credit union and make an account for free. Then using something like twillo to make an extra phone number it, forward it to your regular phone, and you're good to go.