IRS Requirements

[DianeS23]

Did anyone else get an email titled "Act now to meet the new IRS requirement" and stating "The IRS will soon require anyone receiving $600 in payments for goods and services to confirm their taxpayer status. As someone who's received payments through PayPal, you'll need to confirm your taxpayer status by providing your Tax ID Number to meet the requirement and avoid any disruption to your account."

This is NOT a new IRS requirement/law and is simply being discussed as a possibility by the house.  In fact, current discussions have the limit at $10,000 - not $600.  Is Paypal jumping the gun? do they not understand? or are they trying to collect information they don't need "just in case"?  are they trying to signal some political statement?

Honestly, it's making me lose some trust in them.  I'm not sure why they would try to collect this now when it's not a requirements - AND it's so clearly a political discussion right now.  Does this mean they will prematurely SHARE our information with the IRS (or anyone else) too even if it is not a law?  If so, what are they suggesting to share - ALL transactions if the sum is greater than $600?

[Fralick]

Just received an email this morning.  I agree, nothing has been finalized yet.  

[HappyLamb]

Just curious has it been finalized? I just keep hearing that starting January all cash apps will be doing this. What a bummer. I see cash transactions in the future

[DianeS23]

No, you are right.  It's not final yet - they are preemptively taking this action.

[HappyLamb]

Is there any other information on this? Trying to find any articles about when and if it will be finalized. I hope they dont vote this in. Small business or mom pop not gonna survive these requirements unless people pay cash

[Andy11511]

I totally have lost trust in PayPal for this move. I will not comply with it, its not required by the government, it is not a law, it is still being debated in congress and will probably not pass or may pass but will be modified before then. This tells me PayPal is politically driven, like they want to help this bill pass even though it probably wont. I am very upset and will probably start using a different pay method from now on. 

[Temp20211120f · Accepted solution]

Hi I called them today. they said this reporting of $600 is only for Vermont, Matt., Virginia, and Maryland.  The rest of the states is as it used to be $20,000 in a single year, or a payment to you of 200.00 and above.  I'm going to call again to double check.

Susan

[HappyLamb]

Hi there! Thank you for the information. I am in Texas. I was trying to find info. Can you site the news article or if this went into law? I am so confused with all this.

[Temp20211120f]

here's what I found online. Which is what the customer service rep total me in a nutshell. She was mistaken about one, it's 200 transactions in one year, not over 200.00 payment. Anyway, I'm going to google it. I tried calling again and was on hold 16 minutes before hanging up. Good luck.

Susan

[Temp20211120f]

forgot link:  https://www.paypal.com/us/smarthelp/article/FAQ729