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peach6

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Did anybody get this email from PayPal

New IRS Requirement

Confirm your taxpayer Status

I think they want your taxpayer ID (which I don't have because I don't sell stuff) or your SSN

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1 hour ago, Sandy21 said:

Do you think its legit or spam? I've been with paypal a long time and was never asked for anything like that.

I think it is legit because it's also on my PayPal page where it says messages

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I saw it on my PayPal account yesterday. I exited out so I could think about. I might be way off because I haven't been on paypal for months, but it sounds like they don't want you to just keep money there anymore. You either have to deposit to account or set up a special account of theirs that allows you to keep a balance. Not sure if that makes sense or is old news. I was just excited because I'd been locked out for awhile and finally it let me in. 

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I found this PayPal article explaining the changes. Everything you need to know about IRC Section 6050W

It's a long FAQ but here are the highlights. It sounds like the IRS is cracking down on payment processors to help get 3rd party sellers to pay taxes on their income and probably expose black market sellers.

Quote

PayPal is required to report gross payments received for sellers who receive over $20,000 in gross payment volume AND over 200 separate payments in a calendar year. In order to help you understand these information reporting obligations, we have prepared the following FAQs. After reviewing the following FAQs, we recommend you consult your tax advisor to assess tax implications of Form 1099-K reporting.

Quote

PayPal will ask affected sellers to update their account(s) by providing a tax ID number, if they don't already have one on file. Your tax ID number is one of these:  

  • Your Social Security Number (SSN)
  • Your Employer Identification Number (EIN)
  • Your Individual Tax Identification Number (ITIN)
Quote

If you cross the IRS thresholds in a given calendar year ($20,000 in goods/services + 200 separate transactions), PayPal will send Form 1099-K to you and the IRS for that year early in the following year.

 

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I tried calling PayPal the other day but got somebody that didn't speak good English so I didn't understand much of what she said it sounded like I didn't need to do anything but really am not sure.

A friend of mind said she received that a couple years ago and ended up giving them her SSN because they froze her account and had never received any 1099 from them ever

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Never got that message and there is no message in my account. It may depend on what type account you have and how it is set up. Mine was created when I was a small seller on eBay and is linked to 2 financial accounts. 

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22 hours ago, peach6 said:

I think it is legit because it's also on my PayPal page where it says messages

I am really surprised as I have never been asked for my SSN and I'm not comfortable giving that out either. GOOD LUCK with the call and let us know what happens!

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Can you post a screen shot of the email? Sounds like it was not from Paypal.

When you went to your account , was it by clicking a link in the email and then signing in? Or did you go straight to Paypal's site and log in that way?

Does not sound legit.

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1 hour ago, episemion said:

Can you post a screen shot of the email? Sounds like it was not from Paypal.

When you went to your account , was it by clicking a link in the email and then signing in? Or did you go straight to Paypal's site and log in that way?

Does not sound legit.

I went straight to PayPal and it was on the messages and I also got an email

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22 hours ago, peach6 said:

I went straight to PayPal and it was on the messages and I also got an email

Thanks. That verifies that it was indeed authentic and not a phishing attempt. I guess some got it , some did not.

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I got a message earlier in the year that asked for my tax info because I was close to earning the $600 from Prolific that they have to report. I didn't want to but had to give them the info. I only hope they just report the earnings from Prolific and not include earnings from all the other sites.

Whenever I get a message like that I never click on the link. I go straight to paypal to see if it's in my account.

A word of caution: There are scam emails that say your paypal account is suspended. Don't open them or click on the links. Always hoover over the sender to see if it's from paypal.

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