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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
carlsbad2's avatar
carlsbad2
1,380 posts
 

@evanpress The IRS decides where to enforce.  they can chase people working full time paying no taxes, drug dealers, mobsters, girls sellling lemonade on street corners, or paypal. 

Jerry

bob540
405 posts
 

This is such BS.  My guess is that sellers will instead try to make a local sale, in cash only, so there is no record of the transaction.  It happens all the time.  

grh1958's avatar
Ag insider logo xs@2x
grh1958
42 posts
 

@carlsbad2 I was wondering what the girls on the corner were selling

carlsbad2's avatar
carlsbad2
1,380 posts
 

@grh1958 we may frequent different neighborhoods.

 

invalid
1,083 posts
 

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.

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