PayPal 1099???

[CJWrite]

I know - I'm feeling very active today...

I just got an email from a company, saying that PayPal is now responsible for sending 1099s, not the writing companies....

As you may know, the IRS recently made some changes to the 1099 regulations regarding payments made (and income received) via Paypal or similar entities.

After conducting extensive research into this new regulation, our accountants have concluded that XYZ Company is NOT required to send you a 1099-MISC form for ay (<--Heh...a typo) income you may have earned from us in 2011.

The new IRS regulation basically says that Paypal is responsible for sending 1099's, rather then us as the entity that paid you using Paypal.

I guess this only applies to people who make >$20,000 and have >200 transactions. But does this mean we might get 2 1099s with the exact same information. For example, one from wG and one from PP?? If we do, what do we do w/ them?? (Obviously file taxes, but you know what I mean...) What about money sent as a gift from relatives?

[anng]

This is news to me. Paypal has a page with some answers...

https://cms.paypal.com/us/cgi-bin/ma...ng_us/IRS6050W

[AG1976]

https://cms.paypal.com/us/cgi-bin/ma...ng_us/IRS6050W

According to this site, personal payments are not counted.

The company is still legally responsible for sending out 1099s to workers who have earned at least $600. I don't know why they're claiming otherwise. They have no way of knowing which of their workers don't meet the requirements for a Paypal 1099 - what do they plan to do, stick these people with no 1099 at all? I'm sure the IRS would love to hear about that.

[funmom91]

I was just coming to ask the same thing? What about private clients that ask for 1099's? They will show up as income on PayPal so do we still need to provide them with 1099's?

[anng]

I'm going to ask an accountant I know if she knows the answer since she makes payments through Paypal for the company that hires contractors.

[CJWrite]

Originally Posted by AG1976

https://cms.paypal.com/us/cgi-bin/ma...ng_us/IRS6050W

According to this site, personal payments are not counted.

The company is still legally responsible for sending out 1099s to workers who have earned at least $600. I don't know why they're claiming otherwise. They have no way of knowing which of their workers don't meet the requirements for a Paypal 1099 - what do they plan to do, stick these people with no 1099 at all? I'm sure the IRS would love to hear about that.

I was just coming here to post that same link!

But, will we get the 1099-K THIS year, or NEXT year? Looks like the PP site says we'll get it for income earned during 2012. Everywhere else I've looked though states that we'll get it for earnings in 2011. Oh, Grr!

It says I have no 2011 tax documents in PP...

[anng]

Originally Posted by CJWrite

I was just coming here to post that same link!

But, will we get the 1099-K THIS year, or NEXT year? Looks like the PP site says we'll get it for income earned during 2012. Everywhere else I've looked though states that we'll get it for earnings in 2011. Oh, Grr!

It says I have no 2011 tax documents in PP...

I've been in reading their questions and so far I've found a "it will be reported twice so be prepared to prove to the IRS that you only earned that amount once", which doesn't fill me with confidence.

One of my private clients is in Israel, so I don't think I have to worry about them. I do have another though who is in the US and I'm going to see if she can auto deposit my pay instead of using Paypal now.

[CJWrite]

Originally Posted by anng

I've been in reading their questions and so far I've found a "it will be reported twice so be prepared to prove to the IRS that you only earned that amount once", which doesn't fill me with confidence.

One of my private clients is in Israel, so I don't think I have to worry about them. I do have another though who is in the US and I'm going to see if she can auto deposit my pay instead of using Paypal now.

I didn't see that part! That's just stupid.

[anng]

Originally Posted by CJWrite

I didn't see that part! That's just stupid.

It was in the Paypal community, so most likely not an experts take, I hope so anyway. When I have an answer from the acct. who pays me, I'll share what she has to say, if she even knows...

[funmom91]

Originally Posted by CJWrite

I didn't see that part! That's just stupid.

I also missed this part. But, it was something I was wondering about which was why the PC's came into my head.