NEW TAX LAW FOR ONLINE SELLERS
Everything you need to know about IRS 6050W
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, 2011Questions? Log in to your account or call 1-888-221-1161
What Is IRS 6050W?
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 in a single year, AND
* Receive 200 or more payments in a single year.
The IRS changes will apply to all payment providers, including PayPal. They will take effect on January 1, 2011, with the first reports going to the IRS in early 2012. Our goal is to help PayPal merchants to understand and comply with the new requirements.
If you meet the stated thresholds, you will be required to verify your identity by adding a SSN/TIN/EIN to your existing account.
Be sure to read more on PayPal