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
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).