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 6 responses by invalid

This stuff was always taxable if you made a profit, even a garage sale is taxable if you sell something for more than what you paid for it. It used to be the honer system, now there is evidence that's the only difference.

The only thing new about this is the paper trail, these types of taxes have been around for quite a while. The only good thing about this is now you are all starting to see how much the government has been overstepping their boundaries.

@84xfirez-51  Do you really believe that they are just going after the fat cats? They always say that, then they start going after the average taxpayers because it's easier and they actually collect more money in the long run.

So they never had the resources to go after the rich, is that a joke. Rich people are far more likely to get audited than the average person. They always say they are only going after the rich,  then it trickles down to the average earner.

@bubinga 

It's the government, not the IRS, PayPal or audiogon they are just following the new tax laws. The tax payment was always due, if you made a profit, now there is just a paper trail for them to trace