PayPal and the IRS (U.S.) - Honda RC51 Forum : RC51 Motorcycle Forums
 
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post #1 of 8 (permalink) Old 02-06-2015, 02:04 PM Thread Starter
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PayPal and the IRS (U.S.)

With PayPal almost being a requirement for us here, I thought you should know.

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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.
https://www.paypal.com/webapps/mpp/irs6050w

If you come close to or over these numbers, I'd recommend talking to your tax consultant.

I am not a CPA nor do I know the inner workings of US tax system, I am just passing along the info.

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Are personal payments that I receive counted in the total that will be reported to the IRS?
No. Personal payments that are not payments for the sale of goods or services will not be counted when determining if the IRS thresholds have been reached and will not be included on your Form 1099-K if you exceed the thresholds. However, all payments received for the sale of goods or services will be used to calculate the gross payment volume to be reported. PayPal monitors accounts to ensure that personal payments are not being used for sales of goods and services.
So, put "Congrats and enjoy" in the memo line
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post #2 of 8 (permalink) Old 02-06-2015, 03:17 PM
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I've been wondering about that the last couple years.....hmmmm....
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post #3 of 8 (permalink) Old 02-06-2015, 03:48 PM
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Soon the limit is gonna drop even lower.....sharks are never full in their stomach.

Be human to one another and built trust.
That way you don't have to worry about it when you send money as "gift" to each other.
They can't monitor your thoughts..........yet!

That is what makes this forum awesome and make one feels like a family member

Honesty between us.


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post #4 of 8 (permalink) Old 02-06-2015, 04:27 PM
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Originally Posted by James_03_rc View Post
{snip}

I am not a CPA nor do I know the inner workings of US tax system, I am just passing along the info.

{snip}
Nobody really does.
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post #5 of 8 (permalink) Old 02-06-2015, 08:00 PM
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That's our government for ya. They can't get their hands deep enough into our pockets!

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post #6 of 8 (permalink) Old 02-07-2015, 09:23 AM
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The one thing that keeps Congress awake at night is thought that somewhere out there, there's a dollar that that hasn't been taxed to death.
That's why the goal of US and UK governments is to eliminate cash and go to totally electronic transactions.
The UK has been doing a trial run for several months.
Not only would that allow them a piece of the action for every transaction, great or small.
But also gives them total control over your finances.
Press a button and you have no access to your money. A great political tool as well.
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post #7 of 8 (permalink) Old 02-07-2015, 12:15 PM
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I like old fashioned US Post office money orders. Buy them with cash. they actually have pretty good protection if you get ripped off. I had to contact them once. In just a few days, armed Federal agents showed up at this guys home. And they gave him a choice: pay them the money or go to jail. Now.

I got my money back about 10 days later. I called the local US postal service inspectors office a few years ago and confirmed this is still the process. I was told yes. I do see some on line negative comments about USPS money orders. But it has not been my experience.

If you want to revert back to as close to a cash transaction as you can with some protection, I think This is the only way. The govt doesn't require any form of ID to buy. There is no record of the transaction. As long as you fill out the payee block with complete info, I think you are good to go.

I've also used pay pal countless times, and they resolved my only problem quickly. A seller didn't provide the goods. I contacted PayPal, and they froze his account for both incoming and out going funds. He shipped my stuff quickly. Was funny,, asshole seller called me that day and asked me to lift the paypal embargo. Ha ha. I left it on a few days after I received my stuff. Computer issues prevented me contacting paypal. It happens.
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post #8 of 8 (permalink) Old 02-07-2015, 05:44 PM
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Good info!

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