Topic: PAYPAL just sent me a TAX form!! WTF!? What am I doing? I NEED tax advise!

[FrankenFrankenstuff]

Can write off the donations that I made to this site as an "advertising" fee?

[Harsh]

I guess from here on out you could always require those that pay via paypal to use the gift option.  That avoids their 3% fee and shouldn't get you pimped on future 1099K's.  That is the only way I accept paypal anymore.

[FrankenFrankenstuff]

Frigging brilliant. OK.

[scrapvalue]

Has anyone else recieved one of these from ebay?
Did what you recieve show up in your "my ebay" messages, or just an email?
If it didn't show up in your ebay messages, it is someone trolling.
If it was just an email you recieved, there was probably a "link" to ebay.
If it did show up in your ebay messages it is legit. If not, forget about it.

[CycleRanger]

It is legit.

"In response to the statutory mandate included in the 2008 Housing and Economic Recovery Act, the IRS has published specific rules outlining the minimum threshold for the new reporting requirements. Credit card companies, online payment processors and other service providers will have to submit a 1099-K form reporting monthly sales information for sellers that execute a minimum of 200 transactions in a calendar year totaling at least $20,000 in overall revenue."

http://www.auctionbytes.com/cab/cab/abn/y11/m10/i19/s01
https://cms.paypal.com/us/cgi-bin/marketingweb?cmd=_render-content&content_ID=marketing_us/IRS6050W

The IRS is just making sure that you are reporting any profits like you should have been reporting all along.

Also, using PayPal's "gift" option won't protect you from taxes, I'm sure that above a certain amount or number of transactions they're going to ask you for a 501 or 503c and when the gift option is used the buyer loses ALL fraud protection.

If you're really doing that much business then you should probably file a DBA and get a tax number and start keeping track of your expenses.

[MCRider]

CR: "It is legit. "  Yup