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
jond's avatar
jond
5,671 posts
 

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

bubinga
91 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
1,082 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

ozzy's avatar
ozzy
7,216 posts
 

The "new" tax laws should reign in the tax cheaters, not the folks trying to sell used equipment.

Just another example of the Government trying to squelch the little guy...because they are easier targets...

ozzy

bubinga
91 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