Post by Sea Dogs Beach on Apr 3, 2012 15:18:20 GMT -5
Starting in 2011, Internal Revenue Code (IRC) Section 6050W states that all US payment processors, including PayPal, are required by the Internal Revenue Service (IRS) to provide information to the IRS about certain customers who receive payments for the sale of goods or services through PayPal. These new rules apply to sellers who receive over $20,000 in gross payment volume AND over 200 separate payments in a calendar year. In order to help you understand these changes, we have prepared the following FAQs.
Here's Paypals Frequently Asked Questions page concerning these new tax rule: FAQ's Tax Rules