Pay Pal which means eBay and IRS 6050W startes 01/01/2011

[NewWorldOrder]

Not sure if this has been discussed, but looks eBay is not a good place to make that under the table money anymore or for some us the CGC Boards sales threads.

 

 

My PayPal Login today:

 

Starting in 2011, all U.S. payment providers including PayPal will be required by the IRS to report sales information about certain merchants to the IRS. We want to help you understand these changes.

 

* Applies to merchants receiving over $20,000 in gross sales volume AND 200 payments or more

* Applies only for sales beginning on January 1, 2011

 

Questions? Log in to your account or call 1-888-221-1161

 

I haven't seen this discussed yet on the boards, but it was new news to me.

 

John

[NewWorldOrder]

Pay Pal "personal" transactions apparently count towards your 200 transactions and $20,000.

 

 

It's been a nice run since 1999 with eBay for me, so I guess other auctions sites might be getting more of my business.

 

Basically I would think we all need to start keep a real record database or book with all our sales just in case anyone of us is audited by the IRS to show that all the transactions may not be a bet gain.

 

I smell a lot of net losses reported on net gained books.

[KryptoSpidey]

Not sure if this has been discussed, but looks eBay is not a good place to make that under the table money anymore or for some us the CGC Boards sales threads.

 

 

My PayPal Login today:

 

Starting in 2011, all U.S. payment providers including PayPal will be required by the IRS to report sales information about certain merchants to the IRS. We want to help you understand these changes.

 

* Applies to merchants receiving over $20,000 in gross sales volume AND 200 payments or more

* Applies only for sales beginning on January 1, 2011

 

Questions? Log in to your account or call 1-888-221-1161

 

I haven't seen this discussed yet on the boards, but it was new news to me.

 

John

I'm not even close to 200 Incoming transactions a year...well over the $20g,but i have just over 100 trans this year INCOMING...so don't see this being a problem for someone like me.

[NewWorldOrder]

it's either or, so 20K means Pay Pal has to send the form to you and the IRS.

[KryptoSpidey]

it's either or, so 20K means Pay Pal has to send the form to you and the IRS.

Not so..it's AND,and both requirements have to be met.I already looked into it thru Paypal,and they confirmed,AND,not OR...

200 Incoming trans AND $20g...Both have to be met,not one OR the other. (thumbs u

[Bruce1971]

it's either or, so 20K means Pay Pal has to send the form to you and the IRS.

I agree with SoT. Think that "and" should be an "or". With the funding problems governments are having I would expect more of this. In Europe there have been some major crackdowns.

 

Since we are on the topic of comics being more expensive to sell due to higher taxes I am surprised there was not a big thread about USPS losing $6.5 billion last year. Figure eventually postage rates have to go up for non bulk sellers.

 

On a side note, just received those ASM's SoT, thanks

[KryptoSpidey]

Read my above post...

[NewWorldOrder]

it's either or, so 20K means Pay Pal has to send the form to you and the IRS.

I agree with SoT. Think that "and" should be an "or". With the funding problems governments are having I would expect more of this. In Europe there have been some major crackdowns.

 

Since we are on the topic of comics being more expensive to sell due to higher taxes I am surprised there was not a big thread about USPS losing $6.5 billion last year. Figure eventually postage rates have to go up for non bulk sellers.

 

On a side note, just received those ASM's SoT, thanks

 

 

(thumbs u

[rjpb]

Just wait until the states get serious about collecting sales tax on internet transactions.

[NewWorldOrder]

Not sure if this applies, but would this new law also affect people who sell on CC, CL, Heritage, or any other internet sales site?

 

Basically if you sell over 20K on ComicLink will they have to know send you a form as well as the IRS?

[the blob]

$20K is beginning to sound like a business folks. sure, that's sales, not profits, but that's either a lot of comic sales or a bunch of big ones. seriously, i wonder if my main LCS even sells $20K worth a back issues a year.

[skypinkblu]

I didn't get that message...:shrug:..maybe it's going to people who do over $20k in sales? and 200 transactions?

 

Or they know I spend more than I ever sell, .

[dupont2005]

What about multiple Paypal accounts? I have two at the moment. Does that mean 40k and 400 transactions or will they compile them together for me? Not that I have to worry about the 20k part, just curiosity. Also, I assume if you are reselling stuff and could provide your costs they could be written off? If I bought something for $4,000 and sold it for $5,000 I would hope I would only have to worry about the thousand dollar profit.

[dupont2005]

$20K is beginning to sound like a business folks. sure, that's sales, not profits, but that's either a lot of comic sales or a bunch of big ones. seriously, i wonder if my main LCS even sells $20K worth a back issues a year.

I haven't sold more than $200 worth of comics this year but I probably have 5k in sales through Paypal. I was trying something new for a while though and don't sell nearly as much right now, but might get back into selling soon next year with a new venture.

[shadroch]

What about multiple Paypal accounts? I have two at the moment. Does that mean 40k and 400 transactions or will they compile them together for me? Not that I have to worry about the 20k part, just curiosity. Also, I assume if you are reselling stuff and could provide your costs they could be written off? If I bought something for $4,000 and sold it for $5,000 I would hope I would only have to worry about the thousand dollar profit.

 

 

Ebay will simply be providing raw numbers to the IRS. If you sold $22,000 worth of stuff, thats what they report. You and your accountant will continue to fill out your tax forms just the way I'm sure you are doing right now. What is leftover after your expenses is what might be taxed. Only thing different is that the IRS will now have a paper trail from Ebay to ensure you didn't accidently forget anything.

As far as multiple accounts,I have no idea. I would guess they would strongly disapprove of you closing down sales on one account after $19,000 in revenue only to open a new account or switch to an already existing dormant account.

That might be construed as "structuring" by some.

[GACollectibles]

I believe the fine print says they will combine two accounts attached to one person, then report to IRS as long as both 200 transactions and $20,000 conditions are met.

[G.A.tor]

I believe the fine print says they will combine two accounts attached to one person, then report to IRS as long as both 200 transactions and $20,000 conditions are met.

from the paypal website (seems to answer all basic questions)

If I have multiple accounts that, when combined, meet the thresholds, but individually they don’t, will I still qualify? Yes. PayPal and all other payment processors will report sales and transaction volume to the IRS by SSN/TIN/EIN.

[G.A.tor]

Will I Be Affected by the 2011 Tax Changes if I Only Meet One of the Thresholds?

No. A merchant has to pass BOTH thresholds ($20,000 in gross sales volume and 200 transactions) in 2011 to qualify for the new requirements. A business receiving $10,000 in payments per year would not be affected by the new requirements.

 

[Bruce1971]

Hmmm, maybe MO's will make a comeback

[Bosco685]

Not sure if this has been discussed

 

It was, back in March.

 

Paypal and the IRS

 

But it doesn't hurt to bring it up again as now that they added PayPal Personal Transactions into the equation, sellers asking for this payment type will want to be aware how this influences their reporting requirements.