PayPal Community

Hi April Leigh,   The reporting threshold kicks in when you exceed both $20,000 AND 200 transactions in the same calendar year.  Thanks for your question! ... View more

Renegade, 1.  So, ONLY the gross amount of payments (excluding personal payments) received will be reported along with the tax id number, name and address on the paypal account? • According to the current draft form, that is the case.   2.  Will any information about each individual transaction on the paypal account be given to the IRS - including the item(s) sold, who it was sold to or transaction number or details?   • No, that level detail will not be provided. 3.  Will the email address associated with the paypal account be given or kept private?   • No, email addresses will not be provided.   Thank you so much again for participating today! ... View more

Hello genteelfrog,   PayPal experienced a technical glitch with collecting and re-verifying TINs earlier this week.  We apologize for any inconvenience that users experienced and we moved to correct the problem as soon as it was detected.   Moving forward, as you noted, PayPal will have to verify any TIN on record.  Please note that this is a separate process from verifying a bank account.  If you have a TIN on record (for example, you have a debit card, money market fund or Pro/VT), your account will not need  to be re-verified.   In the future, we will give you an opportunity to confirm that this is the TIN you want PayPal to use for tax reporting.   PayPal encourages all users that do not have a TIN currently on file to verify their information in advance.  Coming soon, there will be a link on your Account Overview page.  Once there, you will be able to click View Limits and then click the Lift Limits link to provide and confirm your TIN. ... View more

Hello Renegade,   For people over $20,000 in payments received and 200 transactions, WHATinformation EXACTLY will be provided to the IRS?   • The IRS has not provided a final 1099-K reporting form yet, but according to the current draft form, your gross payments for 2011 will be reported, broken down by month. 1.  Will the IRS be able to obtain ANY information about your Paypal account PRIOR to January 1, 2011...including payments sent, payments received and Ebay transacations/information?   • Only payments received starting Jan 1, 2011 will be reported on the 1099-Ks issued in January 2012 .  PayPal will not be issuing 1099-Ks for payments received in 2010 or before. 2.  Will payments between friends/family members that are marked "Personal" and not charged a paypal transaction fee be included in the 1099 total amount reported?   • No, personal payments that are not for the sale of goods or services will not be included. 3.  Will any Ebay information/user-names be provided to the IRS?   • No eBay account information or usernames will be provided. Thank you. ... View more