Anyone get this message from Paypal?

I received an email today with this message from Paypal. Anyone else get it?


"Confirm your taxpayer status to meet a new IRS requirement

The IRS will soon require anyone receiving $600 in payments for goods and services to confirm their taxpayer status. As someone who's received payments through PayPal, you'll need to confirm your taxpayer status by providing your Tax ID Number to meet the requirement and avoid any disruption to your account.

Confirm Taxpayer Status

3 steps to add your Tax ID Number

To meet the new IRS requirement, follow these steps for each of your PayPal accounts.

Log in through the Confirm Taxpayer Status button
Choose your taxpayer status from the dropdown menu
Enter your U.S. Tax ID Number, your name and your business type if it applies.

Then, if needed based on the amounts you've received, we will use the information you've provided to send you a Form-1099-K in January and share this information with the IRS.

If you've already entered your Tax ID Number, you may have received this email because your information doesn't match IRS records. Log in to confirm that it's correct.

Sole proprietors and single-member LLCs: When confirming your taxpayer status, enter your individual name as it appears on line 1 of your 1040, 1040A, or 1040EZ. If you'd rather provide your Employer Identification Number, submit your Form W-9 together with proof of filing of Form 8832 to taxdocumentupload@paypal.com to ensure that what we provide on your 1099-K matches IRS records."

Id call it fake but who knows.

Do not click on any links in the email.

Go to PayPal the way you normally do and see if there is such a button.

Never click on email links if you have ANY doubt about the authenticity. Hell, I never click on them period.

If I was running a scam, that would be a great way for me to get money from Pay Pal and give you the tax burden. The last I heard was some Dems were pushing the $600 back to anything over $10,000 a year.

Either way, I sure wouldn't respond with my tax ID to any email address someone sent me, I'd be contacting Pay Pal at their listed numbers. Just another reason to not do Pay Pal. Gene

Could of this been slid in the last bill passed and no one was told? Seems so.

https://lifehacker.com/is-the-irs-really-about-to-tax-your-venmo-paypal-and-1847795425

First, The American Rescue Plan Act, which was passed by Congress in March, has a provision that will go into effect on Jan. 1 that requires cash apps like Venmo, PayPal and Zelle to send information reports to merchants and the IRS regarding business transactions totaling more than $600.

Oct 07, 2021 · Those posts refer to a provision in the American Rescue Plan Act, which goes into effect on January 1, 2022, according to which anyone receiving $600 per year using Venmo, PayPal, Zelle, or Cash App will receive a 1099-K and be required to report that income on their taxes.

Sep 24, 2021 · The reporting requirement would extend to services such as Venmo and PayPal. There is an exception for accounts totaling less than $600. The justification is to catch more people cheating on their taxes--closing the “tax gap”--to bring in more money to pay for a portion of the Democrats’ socialist spending spree.

It's not fake. I logged into my PP account and there is a link there to do what they are saying. Looks like I won't be using PP anymore if that's the case.

Looks like I will be selling things on payments of 2-400 or just parts swapping.

I get pretty much every scam PP email there is, but haven't received that one yet.
I don't reply to them, but the better ones, I'll check my messages on the PP site to verify (all fake so far).

If that one is for real, I'm done with them.

I haven't sold any individual parts close to $600 or more in value so I wonder if they mean $600 cumulatively for a specific period of time.

It's already a done deal on ebay and it is 600.00 per year in sales, we can thank our elected officials who slid this in dry as the desert.
Ebay sent a link to contact your state congressperson, legislator etc. to request a more reasonable number which I did but I cannot find it now
I believe paypal venmo and just about every other like business is included starting jan. 2022
I'll refrain from any political comments

Well, I hope the voters get a belly full of this soon. They need to have an irs official booth set up at these stores in CA where all of the shoplifting is taking place.these legal thieves need to pay taxes on this merchandise they are taking.

I find this interesting... I don't use PayPal I have an item for sale here and on another website . I had a buyer that wanted to purchase it because I don't take PayPal he nixed the deal and wouldn't send a money order because he didn't trust me and had been " burned " before. Looks like now there might be even less people using it.

It may be a Paypal requirement in place now, BEFORE its required by IRS with passage of new pending legislation, in order so things do not come to a sudden halt as compliance is met by those sellers currently on paypal.
Besides, PP likely never passes up a chance to gather more personal info on its seller. I would disregard until they start to hold funds personally.
Optics wise, the $600 threshold has been in place for decades, the legislation could have been made more palatable if they had upped it to say $1000 or $1200, say for the reasons of "inflation", and slowly, as they often do, creep it back down over the next decade.

I also suspect this is a $600 annual threshold for PP seller, not a per sale threshold for buyer.

I got a 1099K from PayPal last January unexpectedly. I’d accepted about $2000 in payments through PayPal, some for parts I sold, in some cases from a friend who neglected to use the friends and family option and I didn’t notice. I didn’t know how to handle it so did best I could, and swore off using PayPal since.
I’m not sure what is changed now, as they already were reporting people who received over $600.

Two chances of that happening: none & none. Stores just need to start doing what 4 or 5 Walgreens in SF did - just shut them down. Time to start starving the beast.

PayPal has been doing this as required by the IRS for awhile, you must just going over the min

Facebook Marketplace is also going to be doing this , because of the IRS

It's the same as sales tax getting added to eBay and Marketplace sales , They are forced to do it and nothing we can do with out changing the laws

Great IDEA You need to send that into the uhh President so he can include it in his next "PACKAGE"

I think a resurgence of swap meets will happen in the near term until the cashless society is finally rammed down our throats in toto...

Anyone else hear what they did with MPC over in Vietnam ? ..... (greenbacks were PROHIBITED there)

I strongly AGREE with your comment about a

Quote

cashless society

and that is exactly what they are pushing for.
I can understand the reasoning but their execution IMO is once again going after the poor and middle class while ignoring the loopholes for the uhh
before I left ca n 94 they had people from the State franchise tax board cruising the swap meets logging License plate #'s.
If one was caught selling at more than two (I think) swap meets a yearthey would classify you as a dealer and require you to get a tax license, start charging and reporting sales tax. A friend of mine blew them off, later got busted and was fined quite heavily.

Absolute BS and time for another tea party folks

law has been on books since mid 1980s, just more enforcement

MN has something similar. Greed for that sales tax revenue.

With a requirement to report anything amounts totaling 600.00 or more ?
I am not questioning you knowledge but rather trying to learn a bit more about what seems to be another stab at the middle class and poor

The original reporting requirement was $10,000. Clearly a different target this time around.

Not sure how it works but ive sold on average 3-4k a year for the last many many years and never got a single tax doc in the mail.

I would question the knowledge of the claimer, would like to see somethin to back up the claim.

Of course you would...

In many ways it really dont matter. Its in play and folks will pay. Like the common man has time to go through.... ummm. 2600 pages on the current wish list.

my dad got a 1099 from paypal last year. he tried to claim the stuff he bought as an offset. no go as he was not a registered tax business. as far as the 600 goes, back in the mid 80's, if you won anything at the dragstrip over 600.00, you got a 1099 at the end of the year. under 599.99, you did not have to claim it. now dragstrips make you fill out stuff when you win in case you win again.

And proud of it, thanks for noticing.

So,
trying to get a bit more clarification on this. Does this 600.00 ebay, paypal blah blah blah threshold take effect on transactions in 2022 resulting in a 1099 in 2023
OR
is it taking effect this year 2021 resulting in a 1099 for 2022 ?

And does this affect ALL sellers / and paypal transactions IE: friends and family gifts?

I do understand Uncle joe has backed off on the 600.00 bank transactions but not sure to what degree?

I would've thought all of this would have stirred up a potful of protesting but seems relatively quiet.
I also thought it would stir up a bunch of online fire sales
thanks for any FACTUAL input or sources to learn more about this

One thing I suspect you are overlooking, private companies might be able to legally require compliance all on their own. I do not know the factual reading on that or if it is even settled law on reporting.
My suspicion is, if as others have mentioned it is already being implemented by the big players, unlikely they will back track, as its also likely on the horizon anyway as we head towards a cashless society.

Asking for 'facts" here is pointless btw.

Also remember, the original legislation if I understand it correctly, was for banks to report all $600+ transactions, which is now recently this week back up to $10,000?, banks in recent past were supposed to report any " suspicious" transactions over $10K to IRS, some just to cover their butts IMO reported all over $10k..
What has changed here, is IRS now has the ability to handle incredible amount of $600 transactions likely to be reported, and use them to reduce unreported income, and the fact the gov has a huge deficit.

I also think the current legislation is more a "transaction" reporting requirement for banks, not income, in that I can withdraw $1000 ever day and redeposit the next day, every day of the year, and have zero income, that would not fit the normal 1099 format as income reporting.

I was just looking through the community forum on Paypal for any posts on this subject and found this. There weren't any replies to it though.

IRS Requirements
by DianeS23 in Security and Fraud
‎Oct-28-2021 07:44 AM
Did anyone else get an email titled "Act now to meet the new IRS requirement" and stating "The IRS will soon require anyone receiving $600 in payments for goods and services to confirm their taxpayer status. As someone who's received payments through PayPal, you'll need to confirm your taxpayer status by providing your Tax ID Number to meet the requirement and avoid any disruption to your account." This is NOT a new IRS requirement/law and is simply being discussed as a possibility by the house. In fact, current discussions have the limit at $10,000 - not $600. Is Paypal jumping the gun? do they not understand? or are they trying to collect information they don't need "just in case"? are they trying to signal some political statement? Honestly, it's making me lose some trust in them. I'm not sure why they would try to collect this now when it's not a requirements - AND it's so clearly a political discussion right now. Does this mean they will prematurely SHARE our information with the IRS (or anyone else) too even if it is not a law? If so, what are they suggesting to share - ALL transactions if the sum is greater than $600?

Here is a couple of links with a bit more clarification for those interested

LINKY 1

LINKY 2

Paypal sent me the message I posted in my first post once again today.

This link is from another thread in the unmoderated forum. https://www.nationalreview.com/2021/11/the-white-house-abandons-bank-reporting-plan-for-now/

So, I don't know what the deal is. I would like to know though so I can decide whether or not I am going to stop using Paypal for receiving payments when I sell parts.

https://www.msn.com/en-us/money/sma...-here-s-what-it-means-for-you/ar-AAQvxXA
I'm still not sure why I received a 1099-K last year. I had about $2000 in Paypal transactions reported.
This year I have told people who want to send me money to make sure to use Friends and Family, but I am concerned now that I will still get a 1099K from Paypal in this January.

Yes, the Pay Pal thing wanting your tax ID number is real.

As part of the Covid relief bill, our leaders slid in a provision that lowers the threshold to generate a 1099 on electronic payments to a flat $600. Currently, a 1099 is not generated until both 200 transactions and $20k in electronic payments are met. This changes at the end of 2021. It doesn't change the tax reporting requirements. But it is going to close the revenue gap in unreported income and people will have to account for payments for goods and services on their tax return. I do not think that F & F money transfers will be subject to the reporting.

People have been making a big deal of the potential of the IRS looking into your bank accounts, which is not law. Well this 1099 thing is already law and it has not gotten much traction with people. For casual online sellers it's going to catch folks by surprise as we move into next year.

Would be nice if Uncle Joe looked into all the loopholes the top 10 or 20% use instead of going after 700-1000.00 some middle class schmuck makes selling his used junk on sleazebay or other apps I can agree with lowering the 20K threshold and number of transactions but 600.00 ?

You are spot on with your post....
I too have been following news on the up coming changes to the new $600 threshold for when one will receive a 1099-K
I would not be surprised to see sellers only accepting money orders, etc. instead of PayPal payments next year.

Quote

I would not be surprised to see sellers only accepting money orders

I have been thinking about this and it will be interesting to see how it plays out. EBay, PayPal and the others will take a BIG HIT once this becomes common knowledge.
The above will likely delay shipment till the funds clear and there will be no moneyback guarantee which will open the door for more scammers.
I am surprised that these organizations didn't have enough "influence" to change the numbers to something a bit more reasonable for all. But possibly they were asleep or too busy raking in the $$
My understanding at this time is that F&F transfers are excluded but that also blows the money back deal

A couple of possibilities would be prepaid visa etc. cards or the feasibility of setting up a transfer system outside the US

Bitcoin!

Don't know much about them.
How does one buy and sell ?
Are commissions involved ??
Is it digital currency
How do you convert back to us Dollars if wanted?

When doing so is that tracked or reported?

Be careful when clicking links from "PayPal"
The email from one I got the other day was paypl.com

And always go directly to the site or google before even opening the message. And 99.9% of the time the address is something like
PAYPALnotice@schmuck.com

For those who want to know. Here is a link from PayPal's site that answers a lot of the questions about 1099-K reporting changes that will go into effect on January 1, 2021

https://newsroom.paypal-corp.com/20...ing-Requirements-Your-Questions-Answered

Updated: The change goes into affect on January 1, 2022 and and not 2021 as I stated above...

Nice link, pretty straight forward. Closer monitoring on an individual basis and more tax money collected.

The link makes the policy clear, but not how items sold at a loss get documented.
I buy a couch for $1200. Several years later I sell it for $800. No tax required. But I don’t keep old receipts so can’t actually prove I paid $1200. So now do I need to pay tax on $800 income?
I buy a part for $50 cash at a swap meet. I find out after I get home it’s the wrong part, I already had one and forgot I did, or later I find a better part to use instead, so I sell the one I bought at the swap meet online. I only get $40. I didn’t get a receipt when I bought the part, so do I owe tax on $40 on top of losing $10 on the part?
A record keeping pita that makes it more trouble than it’s worth to sell online anymore.

Uhh did you mean January 1, 2022 ?

Thanks for pointing that out. I have edited my original post.
I'm usually only off by only a month or two, but a year is not good....

they want all 600 dollars deal to let irs know deposits withdraws any thing you buy but i think it didnt pass

the 600.00 bank account monitoring did not but the paypla, venmo, ebay thing did and will take effect 1-1-22

This is way Way WASAAAAY of an overreach by our so called public servants

It seems like this message is fake. I suggest you do not pay or have any transactions indicated in that email because you may be stolen by money or even have your bank details or personal data leaked. This happened to my mother when she had to perform an ein number. A gang of hackers sent you an email suggesting that she left the data in the form. Of course, they were going to take advantage of her. Thanks to the state support, she identified that it was a fake message and, in fact, understood that EIN is done only once and is always valid, without the need to re-enter the data in any form.

Since I originally posted this topic, I have received the email from Paypal I mentioned 4 or 5 times, most recently a couple of days ago. When this takes effect in a few days I am done with Paypal. I don't really care if I am paid by a money order, etc. for parts I sell but I will miss using Paypal to pay for things I am purchasing.

I agree 100,000%.
Watch for an upcoming post on my current Ebay nightmare

I'm thinking that for those in the know about the new lower IRS reporting threshold that can trigger a 1099-K at the end of the next year will probably stop taking PayPal payments. Accepting only money orders will be the new norm.

Will PayPal Friends and Family be considered taxable income? They're really 'gifts'....

At this time they are not. But I suspect that may change. In addition, I suspect Paypal may start charging fees for those transactions as it will likely be used to avoid Uncle Joe's gret idea. Some selling formats like sleazebay are going to require the funds be paid through them and they will of course charge an additional fee and in some case sit on the $$ for up to 30 days. But they claim they're not making any additional money while sitting on it. Sure I believe that, who wouldn't ?
I mean after all it's an HONEST American company right Rumor has it they may change the name to GREEDBAY
I honestly hope uncle joe's idea buries the company

Ploypal is also sending messages saying that they're going to start charing for accounts that are dormant for a year. If it gets to that I'll just ditch them.

They do have to report what they stole.. LMAO