Paypal to be reporting to IRS

Hmm...looks like I will be changing all my online earning to check soon. I hate having to wait on the mail though! Did you actually get one of these emails? I have been with paypal for quite a number of years and didn't receive one.

Well if it is under $600 then nothing to worry about. Not that I would make $600 on this site in a week or month. Too much time to consume for that.

Bad news. Those overspending crumbs in the government want everty last penny. There should be a limit placed on this. What about money I just transfer through my account for various reasons? I might transfer money to someone to pay a bill, not to buy something. Or someone might lend me money through Paypal. Yes, they want your $50 so they can spend it on researching whether or not the IRS should bother collecting taxes from Paypal users...lol. Next, they will garnish Mylot users...what a joke. Instead of looking to rip every last dollar from people, they need to stop wasting money.

So the IRS has finally caught on that maybe people may be earning a lot of money and not reporting the income..I could see where maybe people who earn quite a bit from being power sellers at ebat might start getting a bit nervous about this, but I don't think folks like you and me who earn a few bucks here and there have to worry.....yet :( Technically one doesn't have to report income if it;s less than $600 But crap...can't one earn a few extra bucks somehow without our big brother govt knowing about it? Before you know it, it'll get to the point we have to report extra earned income even if it's only ten cents

I have a Paypal account, but I am not a US citizen. So I guess IRS ruling about Paypal reporting information accounts does apply to me nor affect me. Obviously, the purpose of this is for the government to extract taxes from folks who make money through the internet. I am just wondering, even if such information is furnished, how the government will decide what constitutes earnings that are taxable. Money coming in to one's account does not necessarily connote earnings. There are also transfers of money across accounts, refunds from merchants, debts paid by debtors, top ups to the account through bank accounts or credit cards, and other transactions - all of which are not earnings of any kind. Also people may make some money on the internet and this is paid into Paypal, but they also lose money on other internet schemes they join and in many cases, they may have lost more than what they have earned. How will the government decide under what conditions taxation should apply? Certainly makes me wonder how a fair taxation system can prevail when it comes to considering internet businesses and earnings.

The IRS knows us all by our SSN, so, unless you give that to paypal I don't see how they can track you down. Panic over I hope.

I am sure they are only looking at the Bigger Companies who are making a lot of money maybe thru Ebay, and other sites that have made way over the $600 limit. So the average Joe will have nothing to worry about, unless you have been making over that in Paypal. I know I have nothing to worry about, and most of the places that I earn $$ from online if I make over $600 would send me a Tax paper anyways. Just quite interesting that they are finally getting Smart enough to investigate some of the stuff going on there. To me, it is definately about time.

I only made less than $50 last year, how on Earth can they report that? We have to actually pay taxes on what we earn online now, what if we did not make that much?

I dont have any idea what IRS is but I can undersatnd what it deals with. Its a real bad news, but not till IRS stucks only towards corporate accounts. Its true that Govt want to extract their share from even a single penny that comes to its citizens pockets. lets hope for the best.

I haven't made enough money on MyLot to report to IRS. If I ever make enough money I will definitely report it so I can get money back from IRS. LOL

MAYBE THREE years..i did not pay 48 dollars in interest on year..the statement came in late but three years later i paid a hefty penalty and the 48 dollar interest that i made in a savings account..it is something that i will never forgot and have not done it since...my sister had to pay 2200 dollars on income tax she did not report..so it happens

I wonder how the IRS are going to know who you are, unless Paypal give them your Social Security number, which I haven't given Paypal and hopefully I will not have too. Just a thought!

. . .wow. That's just sad if they have to go after paypal users. Is nothing sacred anymore?! I just turned 18 last month. . .I'm scared of the IRS. =S Taxes are scary. I'm barely making money online as it is and I'm still in high school. x.x; They should really only tax people who make more than enough. .lol. I'm still living with my parents so I don't really have financial problems to worry about yet. .but still I'd like to get a headstart. Which is why I'm trying to make money online and get paid through paypal. Like some of the other people here, I'd be happy just making $10 here. . .which won't be for quite a while since I have finals coming up. .School is so troublesome.

Ah so thats why they have been hounding me just lately about my updating my account, I had to declare just recently whether I was buying to sell on ebay, I thought thats what they were doing, luckily I already informed my tax office that I was selling on ebay.

I have not made enough so far to be reported or worried about it. I guess I will plan on keeping really good records next year. I will have to balance it out with deductions.

Nobody is going after our $50, but we have to add it to our total income. It is upsetting. Federal government is looking into taxing Internet. When you sign in many sites on Internet, you noticed that only people from US have to give ssn, other people don't have to do it.

Well I kinda figured they would. Im pretty sure you have to have made over $600 dollars. Im way below that. So like you said they will targeting corporate place. No worries!LOL

Its only if the income is over $600.00 and my income is way below that so I won't worry about it.

It is really very bad. whatever white income people make, government run after to tax them. What can they do to rich businessmans and people who earn black money? they take bribes and those people get away without paying huge taxes.

I don't know what that means for me. I'm on SSI, and I made like 100 dollars last year. And that 100 dollars helped me get gas, and little things like that. I know it isn't enough for me to pay taxes on it, but I hope it doesn't mess anything up for my SSI.