Paypal drastic changes
When you’re paid for goods and services, the US Internal Revenue Service (IRS) considers this reportable income.
Once you receive $600 in payments for goods and services within a calendar year, tax laws require us to withhold 24% of such payments when you have not confirmed your taxpayer status by either providing your US tax ID or completing a Certificate of Foreign Status. This 24% is sent to the IRS as backup withholding for any potential income tax due on those payments.
You can learn more about this tax law on the IRS website.
I tried to attach a link , but it wouldn't cooperate.
@krelldog Backup withholding applies only if you fail to provide "your US tax ID or completing a Certificate of Foreign Status". For most of us that is our SSN, for a business it is the EIN. As @carlsbad2 mentions, that would be reportable on the Schedule D, however you can't take a loss on the sale personal property. |
