If you have an online bill pay form with PayPal, there is something you should know. We have recently learned that PayPal is asking for your tax ID. This is due to new IRS rules.
Your tax ID number is one of these:
- Your Social Security number
- Your Individual Tax Identification Number
- Your Employer Identification Number
PayPal will use your tax ID number to send tax Form 1099-K to you and the IRS when the payments you receive exceed both of these milestones in a calendar
year:
- $20,000 in gross payment volume for goods or services
- 200 payments for goods or services
To remove the limitations on your PayPal account you must:
1. Log in to your PayPal account.
2. A message will appear asking you to update your information.
3. Click Provide Now.
If you have multiple PayPal accounts, you will need to repeat these steps for each account. After PayPal has received and processed your information, they’ll remove the
limitations on your account and you’ll be able to use your Bill Pay with PayPal account without interruption.
We appreciate your help in complying with these new IRS rules. For more information, see FAQs on the IRS reporting requirements at www.paypal.com/irs.