2. misc-audio
  3. 188792-6478

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

Showing 2 responses by bubinga

bubinga
93 posts
 

All the above reinforces why I try to avoid PayPal at all costs. That and their biased policy towards the buyer in a transaction using PP. So if I purchase equipment from a dealer or e company equivalent, I pay taxes at that time. And if I use PP to sell that equipment, I may, without proper documentation, pay taxes again. The idiocy of it all is beyond astounding.

The world is upside down in so many critical ways. My big question is why the IRS, PP and AG are doing this.

 

bubinga
93 posts
 

Invalid,

Thanks for the clarification. If you sell on AG but receive cashiers check and avoid PP,  does AG report the transaction to the IRS?  

More to discover