posted on August 17, 2001 11:47:16 AM
ok heres a different question. I posted it on a new thread because io felt it may not get an answer in the other paypal thread i started...
if someone opens a paypal bus. acct. are the transaction amounts turneed in to the tax man by paypal. In other words if one has a bus acct and is not reporting that income are they screwing up big time or it is more of a toss of the coin in the danger dept.more simply, when that bus acct is opened do you become a business in the eyes of the IRS, how in the know are they.toss me a few snide remarks
posted on August 17, 2001 11:51:13 AMwhen that bus acct is opened do you become a business in the eyes of the IRS
Not being an employee of the IRS, I don't know for sure, but I would imagine that as soon as your sales produce a profit, you will be considered a business, regardless of the type of account(s) you choose to open.
posted on August 17, 2001 11:56:19 AM
taterhead
i don't remember if i had to submit my SS# to paypal when signing up for an account , way back when, i don't think i did.......if they do not have that info then the irs seems to be out of the picture. i am sure to get a bus acct you have to give up that #........a personal account could be used for selling personal belongings ala a garage sale and skirt the tax issue, or so it seems to me......not sure if that makes sense either
posted on August 17, 2001 12:03:30 PM
Well I have the premier account, not the buisness account, PayPal does not have my SS# so I dont think they report anything but their income.
I personally report to the IRS anyhow- gives me bunches of write offs for my car use and other nice tidbits-
you get to write off your packaging supplies, computer upgrades, ink for your printer, anything that is buisness related- why any one woulld not want to be legit is beyond me
I sell clothing and made a trip to Youngstown OH to visit a popular manufacter- my husband and I had a blast, and guess what I get to write it off
Jen
posted on August 17, 2001 12:39:34 PM
No one knows whether Paypal, eBay, your bank, or anyone reports activity to the IRS. There are lots of conspiracy theories that eBay is the next great untapped resevoir of tax revenue and that the IRS is going to be watching.
According to the IRS, if you regularly engage in an activity that you make an income from, then you are a business, period. And you are required to report that income and pay tax.
Whether you actually do that or not is a decision only you can make - and you have to face yourself in the morning and live with the risk that the IRS may find you someday.
posted on August 17, 2001 02:19:00 PM
I had a biz account, didn't need to give them my SS. What you owe the taxman is by the honor system whether it is reported or not. If you are moving large amounts (10K or more) from PayPal into your bank account, the IRS is usually notified.
Please take any future Paypal discussions/questions to the AuctionWatch.com Services forum or at the very least, space out the threads in this forum so we aren't in danger of Paypal dominating the EO.
posted on August 17, 2001 07:42:17 PM
joice
space them out??? what good would that do. when you have 2 great threads they will both get responses which means they will be close together..........what is it with moderators, moderators in general, not specificly you , they always seem to have a deputy sheriff way of flexing their muscles...
