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PayPal and Taxes

by Avery Berman
13 replies
So this is going to be my first year of actually doing taxes, and a majority of my money came in through PayPal.

I've heard that PayPal does not give information to the IRS.

How do you guys handle this? Do you report it? Should you report it? Do you need to report it?

Help me out here. It's time I start learning about this stuff.
#paypal #taxes
  • Profile picture of the author ShayB
    Originally Posted by Avery Berman View Post

    So this is going to be my first year of actually doing taxes, and a majority of my money came in through PayPal.

    I've heard that PayPal does not give information to the IRS.

    How do you guys handle this? Do you report it? Should you report it? Do you need to report it?

    Help me out here. It's time I start learning about this stuff.
    Are you serious?

    Um....tax evasion is not a pretty thing, I assure you....
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  • Profile picture of the author Amy Bass
    You should report it. If the IRS ever wanted to audit you they could pull your PayPal records.
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  • Profile picture of the author matthewd
    As tempting as it is to not report it... be on the safe side and report it.

    And then just write your Representative a letter about Americans For Fair Taxation: Americans for Fair Taxation
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  • Profile picture of the author Avery Berman
    Oh I wasn't thinking of evading. I just wanted to know all the facts... I'm one of those people that needs to know everything about everything.

    I read a post on a forum about how the OP never reported his paypal earnings and never had any problems. I wanted to know if it was a rare case or if everyone did that.
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    • Profile picture of the author Floyd Fisher
      Originally Posted by Avery Berman View Post

      Oh I wasn't thinking of evading. I just wanted to know all the facts... I'm one of those people that needs to know everything about everything.

      I read a post on a forum about how the OP never reported his paypal earnings and never had any problems. I wanted to know if it was a rare case or if everyone did that.
      That person is crazy....don't listen to him.

      Always declare your income....and always pay the taxes you owe!
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  • Profile picture of the author James Schramko
    That would be crazy. I suggest you do some planning and employ a professional tax expert to plan your business for the next growth phase.

    "Start as you wish to continue"

    You look like you are moving and shaking Avery so you should get the right structure NOW because later on it looks like evasion when you start making changes to reduce tax.
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    • Profile picture of the author ArTsYwRiTeR
      Yeah, I agree on what James said, just always remember we have obligation.
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    • Profile picture of the author Avery Berman
      Originally Posted by James Schramko View Post

      That would be crazy. I suggest you do some planning and employ a professional tax expert to plan your business for the next growth phase.

      "Start as you wish to continue"

      You look like you are moving and shaking Avery so you should get the right structure NOW because later on it looks like evasion when you start making changes to reduce tax.
      Thanks for the quick comments everyone, and thanks for the complement James.

      Actually the whole reason I come asking this question is because last week I took the time to print out ALL my Paypal monthly reports, CPA monthly earnings and Clickbank earnings by month and put it all in a binder organized by month.

      I feel so... clean and organized it's great! On top of that, it was VERY nice to actually know how much I've earned in total.. which was better than I thought it was, which was great to see!

      Even more, it makes it really feel like a business, which is what we all should be building anyway.

      So now I'm trying to get all the facts.

      Next I have to figure out all my business expensives.
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  • Profile picture of the author ArTsYwRiTeR
    It is better to do right way, we know your obligations.
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  • Profile picture of the author Pete Egeler
    Hasn't PayPal recently announced that they would begin providing information to the IRS?

    Thought someone mentioned it on here not too long ago.

    Pete
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    • Profile picture of the author Amy Bass
      Originally Posted by Pete Egeler View Post

      Hasn't PayPal recently announced that they would begin providing information to the IRS?

      Thought someone mentioned it on here not too long ago.

      Pete
      If this becomes true this year or even a few years down the road, I bet the IRS will be looking at past year earnings and seeing if they match up to people's tax returns so they can go after those who "Under report"
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  • Profile picture of the author Scot Standke
    Avery,

    Claim it all, I want some of the coming redistribution

    Scot
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