GoFuckYourself.com - Adult Webmaster Forum - View Single Post - PayPal starts reporting 2011 income to IRS

WorldwideWebGuy · 11-05-2010, 04:50 PM

I just came across a post from PayPal that starting in 2011 they have to start reporting income received by merchants & individuals using PayPal to the IRS. From what I read & can tell, I "THINK" it only effects those who make more than $20,000 a year and who have more than 200 transactions per year; with the income made in 2011 being reported to the IRS in 2012.

Anyone else heard about & have further knowledge or understanding regarding the upcoming change & reporting to the IRS of income (something it didn't do or used to have to do). I know at one point they were going to have to report any income made over $600 by filing a 1099 with the IRS. Now, I think, it has to be over $20,000 or 200 transactions before a 1099 or information form is reported to the IRS. Is this correct?

That's going to kill a lot of ebay sellers & individuals using PayPal & people who make their living on ebay (which is a PayPal company, so ebay is likely going to fit under this same new requirement). This really sucks.

Anyone know of a payment processor that doesn't report to the IRS, especially one that will process adult memberships & payments (even if they are outside of the USA ... but reliable & trustworthy)?

11-05-2010, 04:50 PM
WorldwideWebGuy Registered User Join Date: Aug 2003 Posts: 19	PayPal starts reporting 2011 income to IRS I just came across a post from PayPal that starting in 2011 they have to start reporting income received by merchants & individuals using PayPal to the IRS. From what I read & can tell, I "THINK" it only effects those who make more than $20,000 a year and who have more than 200 transactions per year; with the income made in 2011 being reported to the IRS in 2012. Anyone else heard about & have further knowledge or understanding regarding the upcoming change & reporting to the IRS of income (something it didn't do or used to have to do). I know at one point they were going to have to report any income made over $600 by filing a 1099 with the IRS. Now, I think, it has to be over $20,000 or 200 transactions before a 1099 or information form is reported to the IRS. Is this correct? That's going to kill a lot of ebay sellers & individuals using PayPal & people who make their living on ebay (which is a PayPal company, so ebay is likely going to fit under this same new requirement). This really sucks. Anyone know of a payment processor that doesn't report to the IRS, especially one that will process adult memberships & payments (even if they are outside of the USA ... but reliable & trustworthy)?