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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
invalid
1,085 posts
 

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.

noromance's avatar
noromance
9,486 posts
 

Unreal. A country that taxes a person’s home to the tune of thousands of dollars a quarter even when retired is not a free country.

jond's avatar
jond
5,677 posts
 

Sorry but freedom and paying taxes are two entirely different things.

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.

 

invalid
1,085 posts
 

@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

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