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Collector Zone _ Baseball Group Box Break Marketplace _ Paypal And Irs Changes That Impact Box Breaking

Posted by: road_runner_1964 Jan 14 2011, 07:54 PM

As some of you are aware paypal has kinda changed its business practices.

Now as some of you have seen with Crpalmi and other major box breakers are no longer excepting paypal payments this is why.

Great article straight from paypal

https://cms.paypal.com/us/cgi-bin/marketingweb?cmd=_render-content&content_ID=marketing_us/IRS6050W

Under the new legislation, PayPal will be required to report to the IRS the total payment volume received by PayPal customers in the US who:

Receive more than $20,000 in gross payment volume from sales of goods or services in a single year, AND
Receive over 200 payments in a single year.
The IRS changes will apply to all payment providers, including PayPal. They will take effect for sales that occur on or after January 1, 2011, with the first reports going to the IRS in early 2012. Our goal is to help PayPal sellers understand and comply with the new requirements.

Before your payment volume exceeds the reporting thresholds, you will be required to verify your identity by adding a Tax Identification Number,such as a,Social Security Number (SSN), or Employer Identification Number (EIN), to your existing account(s).

Posted by: SFGiants Jul 12 2012, 12:42 AM

I guess they have no way of telling that the guys hosting box breaks are not really "selling" anything. That is too bad.

Jerad

Posted by: 5toosweet Sep 11 2012, 08:58 PM

The way I had read it is that you are only taxed on your profits. If no profit is made you are good. Just keep records of all your expenses.

Posted by: aceecards Sep 11 2012, 09:23 PM

this is true that only profit is taxable, but as we all know Profit to the irs is an arbitrary number!