You mean "PayPal" doesn't mean "No Pay, Pal?"

You mean "PayPal" doesn't mean "No Pay, Pal?"

Does your business take PayPal? Don’t, um, “forget” to pay your taxes. The IRS has just won court approval to turn over information about people who may try to fiddle the taxman by hiding income in other countries. I.R.S. Asks PayPal for Taxpayer Data

A federal court gave the I.R.S. permission to ask PayPal for information on American taxpayers who have bank accounts or credit/debit cards from financial institutions in more than 30 countries that are reputed to be tax havens. Question is, will Paypal comply?

A spokeswoman confirmed the company received the summons, but said they’re still evaluating their options. “The privacy of our customers’ information is something we take really seriously.”

Gee, you mean payPal isn’t a free pass?

  1. The New Business BlogThe New Business Blog04-13-2006

    Thanks for the information.

    It was only a matter of time before the Government realized that a lot of people were making a lot of money using PayPal, and that there was very little “regulation” regarding the reporting of that income.

    I wonder how this will affect the small time eBay sellers that put up their old set of golf clubs or stuff like that. Does that mean their going to have to report that stuff as income?

  2. Tom McKayTom McKay04-13-2006

    Hey Brian,

    Well, I’m sure Uncle Sam was probably aware of it, but is only now getting around to doing something about it.

    To answer your question — in theory, I suppose all eBay users should report any income, just like people who hold garage sales do. 😉

    But in practice, the IRS probably doesn’t care about small fries like that. I mean, how many bucks in back taxes could they collect on a few transactions totalling a few hundred (or even thousand) bucks?

    I’m not an accountant, but my hunch is that the IRS is MUCH more interested in Power Sellers and other folks making all or part of their living selling on eBay and similar sites.

    So how is your new business unfolding?

  3. The New Business BlogThe New Business Blog04-15-2006

    Tom,

    Good point, Big Brother knows everything! But theoretically, wouldn’t people be able to claim many of those sold items as losses? I know that if I sell a video game or something like that on eBay, I’m getting $10 for something that cost me $40.

    I’m also way too stuck on this issue.

    Thanks for the question regarding the business. It’s coming a long slowly, the “coming soon” page is up (http://www.inmymemories.com) and we’re continuing work on the actual site.

    I would hope (fingers are crossed) that the prototype will be built by the middle of May with actual launch around Memorial Day.

    Wish me luck, I’m going to need it.

    Brian

Leave a Reply

Web Design, SEO Copywriting, Professional Copywriting and Editing